Questions about an IVA

Legacy_user

Hi Everyone.

I have spent the last couple of days having a good think. I am quite bad with money (I used to be quite good but a spendaholic partner has kinda corrupted but anyhow.

I keep going through the cycle of paying off huge chunks of debt then having a mad lapse and ending up where I started at best or sometimes worse. For example I paid off my argos card in full but put a holiday on a CC. I have had my lightbulb moment, I realise what debt means, but I cannot help myself in moments of weakness :mad: so I think perhaps an IVA, which is a legally binding contract could be a good answer.

The reason I think this is that

a) I cant obtain more credit (Yay)
b) I get a definate "paid off" date.
c) I will be able to give my creditors about 80-85% of what they are owed, within the time frame of the IVA.

The more I think about this, the better idea it is. Also it means I can buy things like new clothes (Primark!) and such without feeling as bad.

I know my debts at present, stand at approx £19,500.

I am not behind on any payments at all. I do have some spare cash each month, but not loads, and not really enough to make a decent "emergency" fund.

So my questions:

1) Are the banks/lenders likely to agree to such an IVA
2) How much spending money are people on IVAs allowed
3) We have just bought a car because the old one literally had so many faults it was going to cost more than the cars value to fix it. We bought a second hand smaller car to replace this. Will we be able to keep it or does it get handed back etc ?
4) Would the interest payments be stopped ?

Sorry if its a bit long winded, but I tried to include everything. Just I feel that I am going round in circles and getting nowhere fast.

13000

CharliesAngel

Would you not consider contacting the CCCS to start a debt management plan (DMP) first? Obviously not legally binding but you would be obligated to your creditors each month - the threat of those calling/turning up on your doorstep would surely be enough to stick to it?!

CLAPTON

If you are not behind with payments there is zero chance of an IVA being accepted.
You need to cut up your credit and store cards etc

Best to put up an SOA and let people here advice.

System

Clapton, Gotta say im kind of shocked at that. I mean it does nothing more than provide incentive to go delinquent on your payments for a few months.

Dr_Hook

I wouldn't say zero chance of acceptance but it definitely makes it more difficult. Creditors seem to be of the opinion that if you haven't missed a payment you can afford to pay. You may only be able to make the payments by begging/borrowing/stealing from friends/family or cutting back drastically elsewhere, but you can kinda see their logic - why would they forego full payment for 80%?

CLAPTON

Yes indeed so but thats life.
The world is full of crooks, cheats and fraudsters who exploit the systems set up to protect the weak and those in genuine difficulties.

System

I'll up my SOA in a bit actually, its been a while! I just need to stop spending money on impulse buying crap is the main issue

wyebird

I wouldn't want to mess up my credit rating for 6 years if I could possibly avoid it. It means sub prime mortgages with all of the added costs, not being able to have a credit card to guarantee a rental car and six years is very long time to put up with these things. I know.
If you can stop the impulse buying and avoid the defaults you would be much better long term :-)

System

Ive just added my SOA here

Any help appreciated.