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My IVA story
Apologies for the long post but I thought that it might help someone if I laid out the emotions involved in an IVA rather than the practicalities
We didn't ever plan to get into debt- who does? Life threw us some major curve balls and we dealt with them in our own way, re-mortgaging the house, consolidation loans, credit cards when we couldn't afford shopping then all of a sudden there was a moment of how on earth did we get here. We have never defaulted or missed a payment to any of our creditors, the mortgage payments where all up to date but if we had carried on this way we would never be able to do it, even living on beans on toast for weeks at a time. The worst thing was we couldn't ever see it ending, that's a depressing thought and god knows where we would be if we hadn't taken the plunge when we did.
We calculated 58K worth of debts, how shocking is that, especially with nothing to show for it, no flash car, latest gadgets or designer this and that.
To cut a long story short we contacted the first company we came across and breathed a sigh of relief after the creditors meeting, monthly payments of £900 and a reduction in IP fees was agreed we actually had some money to buy food shopping, it was great. We had more money in our pockets that we had ever had in years. But adapting to life without credit cards was hard, we had to make some serious budgeting plans.
After the IVA was approved we were almost in a honeymoon period, the feeling was fantastic and the overwhelming relief is hard to describe but that feeling soon wears off. You have to stop every so often and remind yourself of the incredibly restricted life we led in the pre IVA days. But still you find yourself wishing your lives away just waiting for it all to end
Once it was all on paper seeing the figures is terrifying, with IVA fees and statutory interest our debt had doubled and we owed nearly 92K but our debt was 58K. We were supposed to pay statutory interest as we were paying back 100p in the pound but we managed to get this clause removed therefore reducing the amount owed by 15K, but the fees were still shocking - but the fees are in proportion to the debt and the supervisors fees were worked out at 15% of all monthly realisations
We would never have cleared the debt in 5 years had we gone it alone. We didn't know at the time when our debt was becoming unmanageable that our finances would improve somewhat. I never regretted the decision that we took, just regretted the choices that we made that put us in the position that we were in.
We told our children from the outset what we were doing, a good life lesson for both of them and luckily they are both older but they still enjoyed fun days with mum and dad, a picnic at the beach, a walk in the woods and mooching for bargains in the local charity shops.
We spent more each week on fuel than we did on food, we lost some friends....You do get to discover who your true friends are when trying to explain that we can no longer afford to make the journeys and afford meals out. There is a lot of stigma associated with debt and the fear of being seen as a failure.
After one review we had some allowances cut, and they had also incorrectly recorded my salary, DH's salary and some insurance figures even though we had sent in payslips, statements and other supporting evidence, I used to get extremely but understandably frustrated over simple admin errors especially when they resulted in us having to up a monthly payment by £50!
It's true you know, people say that the first couple of years are ok, the pressure is off and you can relax a little, I'm not saying it's easy but compared to the alternative it is. But when the end is in sight it's so hard to think about anything but the end, the all consuming, can't think about anything else end. I think that the final push is the hardest
At the beginning of our IVA journey and after the initial elation is over, it does seem like your life as it was is over, there is nothing to look forward to and nothing to get excited about. But it is what you make it, it takes determination and it is hard work and you will eventually reap the benefits. Occasionally something springs up to surprise us and it's those things that we look forward to. You need to get into a routine, humans don't like change and an IVA is a big change and you have to learn to adapt and live with it otherwise it will get the better of you.
There is a light at the end of the proverbial tunnel. Looking back I don't think I would have done anything differently, we have made sacrifices for our children, but that comes with being a parent and doesn't always just involve money. Love and friendship is free and I count myself lucky to have that in abundance.
It took us a total of 4 years and our payment rose to over £1600 a month but we both had good salaries so are lucky, and we have now paid our creditors back 100p in the pound and the IVA fees totalling over 74K - some of this was PPI but oh my, what an achievement!
Thank you if you have read all of this :A
We didn't ever plan to get into debt- who does? Life threw us some major curve balls and we dealt with them in our own way, re-mortgaging the house, consolidation loans, credit cards when we couldn't afford shopping then all of a sudden there was a moment of how on earth did we get here. We have never defaulted or missed a payment to any of our creditors, the mortgage payments where all up to date but if we had carried on this way we would never be able to do it, even living on beans on toast for weeks at a time. The worst thing was we couldn't ever see it ending, that's a depressing thought and god knows where we would be if we hadn't taken the plunge when we did.
We calculated 58K worth of debts, how shocking is that, especially with nothing to show for it, no flash car, latest gadgets or designer this and that.
To cut a long story short we contacted the first company we came across and breathed a sigh of relief after the creditors meeting, monthly payments of £900 and a reduction in IP fees was agreed we actually had some money to buy food shopping, it was great. We had more money in our pockets that we had ever had in years. But adapting to life without credit cards was hard, we had to make some serious budgeting plans.
After the IVA was approved we were almost in a honeymoon period, the feeling was fantastic and the overwhelming relief is hard to describe but that feeling soon wears off. You have to stop every so often and remind yourself of the incredibly restricted life we led in the pre IVA days. But still you find yourself wishing your lives away just waiting for it all to end
Once it was all on paper seeing the figures is terrifying, with IVA fees and statutory interest our debt had doubled and we owed nearly 92K but our debt was 58K. We were supposed to pay statutory interest as we were paying back 100p in the pound but we managed to get this clause removed therefore reducing the amount owed by 15K, but the fees were still shocking - but the fees are in proportion to the debt and the supervisors fees were worked out at 15% of all monthly realisations
We would never have cleared the debt in 5 years had we gone it alone. We didn't know at the time when our debt was becoming unmanageable that our finances would improve somewhat. I never regretted the decision that we took, just regretted the choices that we made that put us in the position that we were in.
We told our children from the outset what we were doing, a good life lesson for both of them and luckily they are both older but they still enjoyed fun days with mum and dad, a picnic at the beach, a walk in the woods and mooching for bargains in the local charity shops.
We spent more each week on fuel than we did on food, we lost some friends....You do get to discover who your true friends are when trying to explain that we can no longer afford to make the journeys and afford meals out. There is a lot of stigma associated with debt and the fear of being seen as a failure.
After one review we had some allowances cut, and they had also incorrectly recorded my salary, DH's salary and some insurance figures even though we had sent in payslips, statements and other supporting evidence, I used to get extremely but understandably frustrated over simple admin errors especially when they resulted in us having to up a monthly payment by £50!
It's true you know, people say that the first couple of years are ok, the pressure is off and you can relax a little, I'm not saying it's easy but compared to the alternative it is. But when the end is in sight it's so hard to think about anything but the end, the all consuming, can't think about anything else end. I think that the final push is the hardest
At the beginning of our IVA journey and after the initial elation is over, it does seem like your life as it was is over, there is nothing to look forward to and nothing to get excited about. But it is what you make it, it takes determination and it is hard work and you will eventually reap the benefits. Occasionally something springs up to surprise us and it's those things that we look forward to. You need to get into a routine, humans don't like change and an IVA is a big change and you have to learn to adapt and live with it otherwise it will get the better of you.
There is a light at the end of the proverbial tunnel. Looking back I don't think I would have done anything differently, we have made sacrifices for our children, but that comes with being a parent and doesn't always just involve money. Love and friendship is free and I count myself lucky to have that in abundance.
It took us a total of 4 years and our payment rose to over £1600 a month but we both had good salaries so are lucky, and we have now paid our creditors back 100p in the pound and the IVA fees totalling over 74K - some of this was PPI but oh my, what an achievement!
Thank you if you have read all of this :A
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Comments
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Thank you for sharing this. Like you, we found ourselves with all this debt and nothing to show for it. It really makes you wonder what on earth all that money was spent on and then you have to deal with the reality of how to pay it back and how to carry on living at the same time.
Reading about your experience has really helped me come to terms with what needs to be done. So thank you again. I know its going to be a long hard road ahead but knowing that there is an end in sight makes it all the more bearable.
YM xDMP MUTUAL SUPPORT THREAD MEMBER 220LBM - JUNE 2008DEBT FREE - JULY 2035DMP WITH PAYPLAN0 -
Apologies for the long post but I thought that it might help someone if I laid out the emotions involved in an IVA rather than the practicalities
We didn't ever plan to get into debt- who does? Life threw us some major curve balls and we dealt with them in our own way, re-mortgaging the house, consolidation loans, credit cards when we couldn't afford shopping then all of a sudden there was a moment of how on earth did we get here. We have never defaulted or missed a payment to any of our creditors, the mortgage payments where all up to date but if we had carried on this way we would never be able to do it, even living on beans on toast for weeks at a time. The worst thing was we couldn't ever see it ending, that's a depressing thought and god knows where we would be if we hadn't taken the plunge when we did.
We calculated 58K worth of debts, how shocking is that, especially with nothing to show for it, no flash car, latest gadgets or designer this and that.
To cut a long story short we contacted the first company we came across and breathed a sigh of relief after the creditors meeting, monthly payments of £900 and a reduction in IP fees was agreed we actually had some money to buy food shopping, it was great. We had more money in our pockets that we had ever had in years. But adapting to life without credit cards was hard, we had to make some serious budgeting plans.
After the IVA was approved we were almost in a honeymoon period, the feeling was fantastic and the overwhelming relief is hard to describe but that feeling soon wears off. You have to stop every so often and remind yourself of the incredibly restricted life we led in the pre IVA days. But still you find yourself wishing your lives away just waiting for it all to end
Once it was all on paper seeing the figures is terrifying, with IVA fees and statutory interest our debt had doubled and we owed nearly 92K but our debt was 58K. We were supposed to pay statutory interest as we were paying back 100p in the pound but we managed to get this clause removed therefore reducing the amount owed by 15K, but the fees were still shocking - but the fees are in proportion to the debt and the supervisors fees were worked out at 15% of all monthly realisations
We would never have cleared the debt in 5 years had we gone it alone. We didn't know at the time when our debt was becoming unmanageable that our finances would improve somewhat. I never regretted the decision that we took, just regretted the choices that we made that put us in the position that we were in.
We told our children from the outset what we were doing, a good life lesson for both of them and luckily they are both older but they still enjoyed fun days with mum and dad, a picnic at the beach, a walk in the woods and mooching for bargains in the local charity shops.
We spent more each week on fuel than we did on food, we lost some friends....You do get to discover who your true friends are when trying to explain that we can no longer afford to make the journeys and afford meals out. There is a lot of stigma associated with debt and the fear of being seen as a failure.
After one review we had some allowances cut, and they had also incorrectly recorded my salary, DH's salary and some insurance figures even though we had sent in payslips, statements and other supporting evidence, I used to get extremely but understandably frustrated over simple admin errors especially when they resulted in us having to up a monthly payment by £50!
It's true you know, people say that the first couple of years are ok, the pressure is off and you can relax a little, I'm not saying it's easy but compared to the alternative it is. But when the end is in sight it's so hard to think about anything but the end, the all consuming, can't think about anything else end. I think that the final push is the hardest
At the beginning of our IVA journey and after the initial elation is over, it does seem like your life as it was is over, there is nothing to look forward to and nothing to get excited about. But it is what you make it, it takes determination and it is hard work and you will eventually reap the benefits. Occasionally something springs up to surprise us and it's those things that we look forward to. You need to get into a routine, humans don't like change and an IVA is a big change and you have to learn to adapt and live with it otherwise it will get the better of you.
There is a light at the end of the proverbial tunnel. Looking back I don't think I would have done anything differently, we have made sacrifices for our children, but that comes with being a parent and doesn't always just involve money. Love and friendship is free and I count myself lucky to have that in abundance.
It took us a total of 4 years and our payment rose to over £1600 a month but we both had good salaries so are lucky, and we have now paid our creditors back 100p in the pound and the IVA fees totalling over 74K - some of this was PPI but oh my, what an achievement!
Thank you if you have read all of this :A
Anaheim well done to you and your family, what an achievement.
I had life challenges a few years ago in a diff way but still financially, it was tough going but the moral of the story is the sooner you accept the position you are in or going to be in and get started on trying to sort it out the sooner it is all sorted, there is a light at the end of the tunnel but you must make a start to get to the end. WELL DONE.0 -
I have to say, what a familiar story! Almost word-for-word, that was us! Although, if I am totally, completely honest with myself, if we hadn't have lost our jobs and had to take lower paid jobs, then I wonder how long we would have lasted - because we wouldn't have changed and it would have got worse.
We're 3 years in so far, another 3 to go then we'll be debt-free for the first time in our adult lives! And how good it feels to actually save up for the things we need! For example, our fridge-freezer just died, but we had £400 put by! Oh, that felt sooooooo good to be able to buy it without credit!
It's still a question of careful budgeting and forward-planning, and we're still learning. But these are lessons we never learned before and I think we'll remember them for always.
For us - a worthwhile - and necessary - journey.I wish I was a glow worm, a glow worm's never glum
Cos how can you be gloomy, when the sun shines out your bum?
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My story is not so good. My IVA was failed because the company were incompetent. Our salary decreased and cost if living goes up of course. and yet despite asking them to review the case over a period of 2 years with several forms completed, numerous emails and telephone conversations, the did not review it so it failed. I told them so often what I could now afford to pay based on change of circumstances but they wouldn't have it. I now have all the creditors chasing me again.
It's right what you say, you can live without credit, you can explain to your kids why you can't do things or spend money like you used to and you can learn to budget on less. If the IVA company had been fair with me I would be dent free by now. As it is most of what I paid them was lost in their costs in addition to A PPI Payment the received from my bank. So back to square one with no positive light in sight ��0 -
Oh Jan that's awful and must have been so frustrating for you. Did you seek advice from anywhere? I assume that you have lost two years worth of payments, did they propose bankruptcy? Can you approach your creditors and come to an agreement with them based on what you could afford. I can't imagine how you must feel and I hope that you can get this sorted.0
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I have approached my creditors yes and what I can pay them all each month will probaly take me to the end of my lifetime. So I feel the only way I can move forward s banrupcy. Spoken to others about this who have been through it and read alot online. So seems like the best option for me now. So we'll see.
I feel like I need to report this to the FSA as I dont think I was dealt with properly but dont have the will or the energy for this at the moment. One thing at a time
But I will get there. Positivity is the best way forward :-)0 -
Don't waste your time with the FSA, I understand their remit does not include insolvency practitioners. Better off using the formal complaints procedure, including complaining to your IP's regulatory body.
The insolvency service website has more details.
Sorry to hear of your iva experience. Good luck with the BR route.0 -
Yeh okay. Thaks for the advise. :-)0
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The FCA (the FSA doesn't exist any more) doesn't regulate IPs when they are running an IVAaas UPMNII says.
It doesn't sound as though you have a complaint that your IVA was originally "mis-sold" so much that it has been badly administered. You certainly should have had reviews, however it may be that it would not have been possible to reduce your monthly payments. Whatever IPs say, IVAs are not flexible arrangements.
As UPMNII says, if you do want to complain about how your IP handled your case, you have to complain throught the insolvency service to the IP's authorising body. There is a useful article here about this: http://debtcamel.co.uk/complaint-iva/.0
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