IVA - Right decision???

longtermplanner

sourcrates wrote: »

Your credit rating will be very low, you will be on the insolvency register, so your chances of been approved for a loan are pretty slim, chances are you will have to opt for the 1 year extension instead.

Unfortunately you cannot rely on this being correct. There is at least one firm of sub prime lenders at the moment that is offering secured loans (at 15-20% or more) to people in the 5th year of an IVA. If one of these is put to you by your IVA firm, you can't just say "oh no, Barclays and HSBC have rejected me so I'm not going to take a loan from any one else."

althas

Hello Yummy

I have a bit of a cut and paste response to people asking DRO, IVA and if it's right for me. This is something you need to talk to a professional about and get all the information before you decide. And not a call centre person who's only job is to get your business and money and not necessarily what is best for you

"Cut and Paste Starts Here"
What I will suggest is a visit to iva.com. They have a host of IP's and firms that are reviewed by the people that matter, their clients

Pick 2 or 3 different ones and ring them all to talk things through. Do not agree or sign until you have done this. It will ensure you get the correct information for you to make a choice that best fits your situation. EVERYONE is different. Remember you will be dealing with these poeple for 5+ years if you go this way, so you have to make sure they are right for you

The only advice I will give is be 100% honest with them when you talk to them, leave nothing out. And write ALL the questions you have before you call and make sure they answer them all

I found my IP through that and their sister site iva.co.uk which are a set of forums. A fair number of the IP's are active posters on there. If you want to know who I went with, throw me a PM and I will happily tell you. I have been nothing but 100% happy with every aspect of their service and advice throughout my 5 years

Good luck on whatever you decide to do

Yummy-mummy

Hi Althas

Thanks for your reply. I've had some info from Payplan who we currently have our DMP with and who have suggested we go down the IVA route. One thing that is putting me off slightly is that they are asking for proof of travel costs. Fuel receipts wouldn't be a problem but expecting my 14yo to remember to get a bus ticket and keep hold of it every day maybe a bit much to ask!

The more I mull it over, the more inclined I am to want to stick with the DMP. It may take time to clear but hopefully we may be able to increase our payments in the future. Just waiting now to see if our creditors accept our reduced monthly payment...........:eek:

YM x

DorisTrousers

Not sure I follow this logic. You regret not being debt free now, yet are happy to sign up for another 23 years, although you "may" be able to reduce the term with increased payments, simply because you are asked to prove travel?

Why don't you save your fuel receipts, and provide a link through Google, or other search engine, to local school bus providers current price structure? If Payplan won't accept such a sensible compromise then you are at liberty to find someone that will.

Things CAN change, accepted, but you seem fairly confident that your base is stable? Therefore, is 5/6 years not better than 23? Even if things do get better and you pay more during the term then at least it stops at 5 years, possibly 6. Is that not worth serious thought against a scenario of uncertainty? Also, what if things don't improve? Can you really accept a 29 year DMP for such a, with respect, flimsy reason?

I accept that some people just simply don't like IVA's, including many on this forum, and that's ok I suppose, each to his own and all that, but please think very carefully before you enter another 23 years of complete uncertainty, which is now effectively what your DMP is.

Yummy-mummy

To be honest I'm absolutely terrified of going down the IVA route - there I've said it! The DMP has been running for a few years without any problems and I feel that "if it aint broke, why fix it". I know that a DMP for 29 years is an unrealistic way to carry on especially considering our ages - we will both be approaching our 80's by that time.


I've got a telephone appointment with Payplan tomorrow about the IVA so perhaps things may become a little less daunting after that.


YM x

longtermplanner

A 23 year DMP is a life sentence. Really not a good option at all.

Have you considered bankruptcy in detail? How much equity is there in your house? Could someone else in your family (parent? sibling) purchase this from the OR so you can stay in the house?

How do the unsecured debts divide betwen you, would it be possible for one person to go bankrupt and wipe out most of them? That would mean that only half the equity had to be purcahsed from the OR.

Anaheim

Hi Yummy Mummy

Please don't be terrified. I would be terrified of the thought of living for another 23 years on a DMP as Longtermplanner has said. Do you really want to be paying your pension into a DMP?

We too were in the same position as you but here we are almost five years later almost 50 and are now completely debt free (apart from the mortgage of course) we paid 100p in the £ back to our creditors and are really pleased.

The scariest part of this is actually making the decision.

Its also worth mentioning that you are able to take payment breaks whilst in an IVA for real emergencies. Claim for all allowances possible and the highest that you can claim for. Use allowances that you wouldn't ordinarily use to save towards other things. IP's also have the power to reduce your monthly payments by up to 15% without calling a creditors meeting if you are really struggling and can show that you are.
x

Max_Maxwell

A DMP that's going to run for 23 years doesn't sound like a viable option or the best way to spend a third of your adult life.

At least with an IVA you have an agreed term, usually 5 or 6 years, to repay what you can afford, and then be released from your obligations with no further liability. Of course I am simplifying the situation, but that's the upshot of it. In an IVA there will always be a light at the end of the tunnel and 5 years is an awful lot more attainable than 23.

Our views on here are mostly based on personal experience and no doubt someone else may be along shortly with a different view to mine. But my regret is delaying the inevitable by attempting a DMP before an IVA. I spent 3 years drowning and making token payments to my creditors to end up back again at the same point and entering an IVA. Had I gone down the IVA route in the first place, I would be home and dry now. Oh, isn't hindsight a joy?

Debt is a ball and chain that holds us back, but doing something about it offers us the key to remove that burden eventually. Surely, the quickest route to freedom is preferable?

cmcavon

I don't have much advice to offer but we are in a similar position. We've not been in a dmp but have the option of a dmp lasting up to 23 years or an iva. We're going down the iva route but I'm terrified! It's 6 years of being completely uncredit worthy, having our names on a public register and accounting for every penny. But after 6 years we can start again. I keep panicking but I know it's the right thing to do. Hope you find the right solution for you.

Depth_Charge

Hi

Latest on the IVA / secured loan issue from the Debt Camel site

Interesting read IMO for anyone considering an IVA or looking for information on this subject

http://debtcamel.co.uk/secured-loan-ivas/

DC