Get out of IVA?

halfbear

Afternoon all

I was just wondering if there's a way i can get out of my IVA? I am about 12 months into a 60 month "sentence" and am having doubts whether it was the best thing to do?

I pay £378 a month towards the IVA, which I can afford but now my wife and I are thinking about buying a place, as we currently rent... is this impossible?


any ideas welcome... surely there's something where I can write it all off



thanks guys

rog2

Hi hb - Normally an IVA is a legally binding contract and if you default, the next stage is, usually, bankruptcy.
You can, however, try negociating with your Insolvency Planner.
If this doesn't work, have a word with CCCS or National Debtline.

Good luck.

rayday2

Nothing can be wiped off it has to be paid off. I am not sure you can switch to a DMP from a IVA.

As for a mortgage you are going to pay mega amounts of interest so early into an IVA your credit history will be bad and probably quite bad even by sub prime lender standards, in there books an IVA is one step away from bankrupcy.

Just going through a re-mortgage at the moment and this time we are with sub prime but next time they reckon a high street lender as we are "just" sub but an IVA would have put us two or three categories up.

I am sure someone with mroe experience of IVAs will come along soon but you could be better off waiting four years when you owe nothing more and then get a better deal.

halfbear

thanks... what's a DMP?


also, if the IVA is in my name and we apply for a mortgate in my wife's name, would that help at all... i don't really know anything about mortgages so any help would be appreciated!

rayday2

Well on a credit search you could still come up as joined so you could still be looking at sub prime lenders but maybe a little less riskier on there scales.

A DMP is a debt management plan unlike an IVA it can go on for less or longer than 5 years. You pay back all the money you owe unless near the end you offer final settlements. Most the time you can get companies to freeze interest but you pay back what you can afford like an IVA not the minimum that they accept. You could though with an awkward lender end up with a CCJ.

Bestthingsinlifearefree

Renting at the moment is cheaper than buying in the UK.

So if you are in debt it makes sence to carry on renting as taking on a mortgage will just strech you more financially.

i.e if you have been struggling to pay your debts while renting you will definitely struggle with buying / mortgage as it is more costly than renting a like for like property.

You are in debt and want to take on more debt with a mortgage

Why not clear your debts first and then look at buying?

Good luck!

Stargazer_Lily

The way I see it is that you have four options:

1) Leave the IVA and pay it all back, either through a DMP or as a lump sum

2) Stick with the IVA for the next four years and get a percentage of the total amount you owe knocked off

3) Default on your IVA and be made bankrupt and not have to pay as much off but lose control of any assets you do have

4) Apply for voluntary bankruptcy but with the same drawbacks as number 3.

Whichever route you take you will probably have trouble getting a mortgage without going down the route of applying through a company which specialises in those with a history of credit problems and who will charge you more, want a bigger deposit and/or lend you less money. If I were you I'd have a second think about buying a house right now.

Lil

halfbear

thanks guys, it's always good to hear everyone saying the same thing no matter how "bad" it may seem...

i know what you mean about renting being cheaper at the moment... even if i was debt-free i think it would still be hard to get a mortgage (especially where i live in the South East!)


I think it's more the fact that we would love a place of our own but these days it's harder and harder to get onto the ladder...

rog2

halfbear wrote: »

also, if the IVA is in my name and we apply for a mortgate in my wife's name, would that help at all... i don't really know anything about mortgages so any help would be appreciated!

Hi hb - I did reply earlier, but something wrong with computer and I 'lost' the post - if it turns up again, please accept my apologies.

Providing that the IVA is in your name, and does NOT include any joint debts, then I see no problem with your wife applying for a mortgage in HER name.
However, I would imagine that your income would NOT be taken into account, thereby restricting the amount that your wife could borrow.
I, like you, am no expert, so I would suggest that you also post this question on the 'mortgages' board.