Alternatives to iva?!

Pinkwhisk

Hi

Our creditors meeting for our iva is Wednesday. It has however come to light being in an iva would make it very hard to rent anywhere else.

We will be moving out of our current flat sometime in the next 6-12 months, and private rents are few and far between.

Now I'm panicking. I do not want to enter into an iva and then be homeless because of it. But what are our options? We owe 11500.

Please help.

Our iva is being set up through Harrington Brooke's, I'm assuming until Wednesday I can cancel the iva and go with somebody else onto something different?!

sourcrates

Hi,

Debt relief order (DRO) may be suitable ?

http://m.stepchange.org/how-we-can-help-you/debt-solutions/debt-relief-order?WT.srch=1&WT.mc_id=288026&WT.seg_1=dro&gclid=COnOl7XhsMoCFRQ6Gwodob4H5g

Although I would not discount an IVA entirely, many people are in these arrangements and rent successfully.

Pinkwhisk

Thank you.

Dumb question. Is it the same as an iva that it would be on public register? As I think that's the issue with iva that it goes on insolvency register and letting g agents would see it?

Sorry if that's a dumb question - I have a 7 month old so need to make the right decision ASAP

sourcrates

Pinkwhisk wrote: »

Thank you.

Dumb question. Is it the same as an iva that it would be on public register? As I think that's the issue with iva that it goes on insolvency register and letting g agents would see it?

Sorry if that's a dumb question - I have a 7 month old so need to make the right decision ASAP

Yes any formal solution such as IVA, DRO, Bankrupcy, would mean your name being on the insolvency register for 6 years.

Your only other option would be a debt management plan, which is informal, you won't appear on any register, but you won't have any protection from your creditors either.

However in practice most creditors accept a DMP without to much hassle.

Depends how much you have to pay down your debts with, as to how long the arrangement would last.

http://m.stepchange.org/?WT.srch=1&WT.mc_id=270049&WT.seg_1=stepchange&gclid=CO-2hfbjsMoCFUJmGwodeiAM1Q

Just one thing, don't ever pay for a DMP, stepchange will do one for you for free.

Pinkwhisk

Thank you. I'll call step change tomorrow and see what advice they give. I hate myself for being in this mess. I just want it sorted without it affecting every area of my life!

I dont think this will be an option but I assume loans to pay back our debt with are no good?!

sourcrates

Pinkwhisk wrote: »

I dont think this will be an option but I assume loans to pay back our debt with are no good?!

No, I would not go in that direction.


Although it may seem an easy way out, even if you could get a loan, at a good rate, many, many, people fall down, as they don't close off the lines of consolidated debt, they re-use them, and end up with twice the debt they started with.


Best to sort it with a debt plan of some kind, then when its gone, its gone.

Pinkwhisk

I thought so! I'm signing up to the 3 credit agencies now to see who we owe money too ect then will contact them all.

Argh I just want our debt felt with!!

HappyMJ

Having a BR, DRO or IVA isn't usually a problem for landlords. I've replied a few times over the last few days on here.

Rent is priority bill number one. It comes ahead of all other bills including unsecured creditors. People making small payments towards their debts formally through a IVA will not be pressured by their creditors to make extra payments. People on DMP's can be pressured into making more payments even using the rent money to pay the overdue bills to avoid being taken to court and getting a CCJ or to magistrates court for a liability order for overdue council tax.

Tenants on IVA will always ensure the rent is paid first and any insolvency practitioner will always ensure the tenant has more than enough money to meet their day to day living costs.

As long as you've always paid the rent on time you'll be fine.

sourcrates

Pinkwhisk wrote: »

I thought so! I'm signing up to the 3 credit agencies now to see who we owe money too ect then will contact them all.

Argh I just want our debt felt with!!

Don't give up on the IVA just yet.


Do a little research, if your only concern is been able to rent again, then I`m pretty sure that can be worked around.


Don't forget, you get 100% protection from your creditors in an IVA, its 5 years, maybe 6 as you don't own a house, but at the end of it, your debts are written off.


My guess is though, stepchange will recommend either a DMP or a DRO.

Pinkwhisk

I don't want to give up on it. My main concern is renting as don't have anybody to be a garuntor or save up 3/6 months rent ect!

sourcrates

Pinkwhisk wrote: »

I don't want to give up on it. My main concern is renting as don't have anybody to be a garuntor or save up 3/6 months rent ect!

Make sure your budget includes money to save up an emergency fund that you can use for a deposit.


Is it likely you will have to move soon or are you just thinking ahead ?