Iva help please

Simpost

Hi all this is my first post so please be kind.

I am currently with step change with a joint dmp with ex partner owing 50k and paying £230 pm ( me paying £100 ). Having currently split and selling my house and currently renting I'm looking at my individual finances and what to do.

I have done a credit check and it looks like the debts in my name Total 31k. I have asked my creditors for proof of credit agreements to make sure this is correct as I'm 99.9% sure 3k of that is not mine and they came back with evidence that I was right, but just waiting to hear of them to confirm, and get this off credit file.

I'm also thought 11k was not in my name but the creditor says otherwise, so guess I am responsible ! I have no paper work due to moving and split. Can I contest this at all ?

So saying I'm 31k in debt and only on a 17k postman wage would you guys recommend an Iva ??

I have been paying into a dmp for probably 2 to 3 years and will probably take the rest of my life to pay off !! And now I've split from ex who was the big earner.

I did have a house which I sold when we split and came out with 6k which I have transferred to my dads savings account. I intend to use this for emergencies like car, deposits, child etc for the next 5 years or so if I go into Iva.

What happens if I need to rent another house if I enter Iva ?
What happens if my new partner wants to buy a house in the future if I'm in an Iva ?

Many thanks for your replies

foxy-stoat

Will you be living in your rented house for the next 5 years and do you intend on changing jobs in the near future?

You will be credit checked by the next Landlord or Agent, so the IVA may or may not effect the application.

If you are not on the mortgage then it shouldnt affect the new partner, but if you have any financial associations then its possible it will, joint bank accounts, joint bills etc.

As for moving to an IVA, I would do the PPI refund thing first, if you get any nice payouts you can pay a chunk off your debt, add the £6,000 you have then you may be able to repay enough to repair your credit file to get some low interest cards and shuffle the debt around a bit.

You have options at this point, £6K cash & possible PPI refunds - exhaust these first before considering an IVA.

You could repay 20% of your debt tomorrow.

Simpost

Thanks for the response foxy.

I have been renting for the past year and am quite comfy in my new house but not sure how long the tenants will be renting it for so might in the future have to look for another rented property or may want to get one with my new Gf.

I have no association to my new partner as only 4 months been together, so early days atm but just looking at the future and how it might pan out ��

Did the ppi thing years ago and all was declined as was all unsecured loans.

I def won't be changing jobs I love my job as a postie and can see me staying there for the rest of my life �� I'm currently 38 so got another 30 or so years health permitting.

I would imagine even if I asked my creditors for a reduced amount to pay off debts as I have 6k sitting there it wouldn't be enough so that's why I have "hidden" the amount as don't want to pay the 6k and then go into an Iva and scrimp by every month.

foxy-stoat

Going from previous experiance, my debt was over double my gross salary at the time, so no chance of repaying it within 10 years, so IVA was the best route for me. I was paying a lot of interest each month though, as you are in a DRO already your interest is probably frozen.

An IVA was the best thing for me, may not be for you. I used an excel spread sheet and planned all monthly/yearly outgoings and stuck to it. Teaches you how to budget and only to spend what you have.

Speak to Payplan or another debt charity about your options.

fatbelly

Simpost wrote: »

I'm also thought 11k was not in my name but the creditor says otherwise, so guess I am responsible ! I have no paper work due to moving and split. Can I contest this at all ?

You have the right to see a copy of the original agreement if it is a consumer credit debt (loan, credit card, HP, not overdraft) and until the creditor complies the account is unenforceable.

https://www.nationaldebtline.org/EW/factsheets/Pages/gettinginformationfromyourcreditors/creditagreementadvice.aspx

Have you seen the agreement? Is your signature on it?

Don't jump into an insolvency solution until you have established how much you actually owe, and that it is enforceable. Also bear in mind that the house sale may well be looked at by the Insolvency Service and you would have to account for the 6k equity.

Advice to do as much reclaiming as possible is good.

Rmeek

With regards to mortgage etc you can not get a mortgage whilst in an IVA. Financial institutions will just not entertain you. If your partner were to buy on her own on paper, providing she has no other financial links to you such as a joint bank account or loan, then it should be ok but as above, it could affect you both in some way. There is no real way of telling unless you do it.

We did a full and final settlement IVA almost 4 1/2 years ago now. It was the best thing we ever did. The only other option was bankruptcy and we wanted to avoid that if possible. My husband and I did had interlocking IVA's and in total our debt was £52k! We had a series of unfortunate events on top of debt I acrued from being at uni. It spiralled out of control very quickly. We ended up repaying 20p to the £ as that was all we could offer (we had a good friend that lent us the money) It took us 3 years of scraping to repay her but it was the best thing we personally ever did. We only now have a year and a half until we can remove the IVA from our credit files. We have never had any issues with mobile phone contracts/insurance etc but we could not remortgage on a better deal when we tried last year. I have friends that did IVA's and they haven't had issues renting providing they has references and the bond.

I was advised when we did our IVA that with bankruptcy, your creditors would get nothing at all. With an IVA at least they would get a small return. It's a difficult one to weigh up. Good luck whatever you decide to do.