new ccj, offered an IVA - confused

belindasteer

I have just had a ccj against me for £4k (31st July). I had a call from a company suggesting I take an IVA, they went thru my total debt which is well under £10k and suggested an IVA was the best action as it's time limited.

I am a new Mum and currently not working, my partner has a very new business and we rent privately, we are scraping by, robbing Peter to pay Paul and juggling like you do, I am hoping to start part time work soon which will help. My partner also has debt and her credit rating is poor whereas mine has always been ok apart from some defaults.

It is highly unlikely that we can scrape together the £4k to pay off the ccj and the IVA sounds tempting (just from what the man said) but I a really really confused what to do.

Any advice would be a help, Thanks

happy_bunny_2

Did you respond to the CCJ paperwork?

Did the court set a monthly payment or was it all due now?

I would not deal with anyone who just rang me up, they will be after the fee for the IVA.

I would talk to a free debt charity like national debtline or stepchange.

The national debtline website has various CCJ fact sheets that you may find useful.

HB

Giggles_Fairy

An IVA with only 10k worth of debt and circumstances that are likely to change in the short term is not ideal.

Have you considered bankruptcy? or a debt management programme?

Tixy

This cold calling IVA company are little better than circling sharks.

Definitely recommend speaking to one of the debt advice charities who will offer you free impartial advice, unlike the company that called you.

National_Debtline

Hello there,

Please do consider seeking independent advice from the CAB, Stepchange or ourselves. I really do not think that an IVA is the right option for you at all, it could prove to be an expensive mistake.

Based upon the limited information you have given, a more likely insolved-based option could be a 'Debt Relief Order'. The firm that called you wouldn't have told you about these - because they do not make any money for them.

In a nutshell, If your DRO application is successful, most creditors cannot take action to recover your debts for 12 months. The debts are then written off after the 12 months are up. The total cost for a DRO is £90.


There are strict rules that you have to meet to qualify for a DRO. You must:

• be unable to pay your debts;
• have total debts under £15,000 at the date the application is approved by the official receiver;
• have assets below £300;
• not have a car or motor bike worth more than £1,000;
• have less than £50 a month spare income after normal household expenses are taken into account;
• live in England or Wales (or have lived or run a business in England or Wales in the last three years); and
• not have had a DRO in the last six years.

Here's a link to our fact sheet. Before you make any decisions please do consider seeking further advice. I really hope that you find this information useful.

Best wishes,

David @ National Debtline.