IVA to DR

Pinkwhisk

Hello,

I'm after some advice.

Last year we contacted Harrington Brooke's about setting up an iva. This has been in place since January. However, my partner has now lost his job and is starting a new one, and I have decided to stay at home after maternty leave.

To be honest, we googled help with debt and ramh the first number that came up. Not a good idea, but I had a new born baby and no way out of our debts.

Due to the change in circumstances, we are looking at cancelling the iva and going into a dro. I wish I did this on the first place.

We are also concerned as we rent and cannot get a garuntor so if asked to money out while in an iva I really don't know what we'd do :-( .

Has anybody done this before? I'm ringing Harrington brooks in the morning.

Thank you

PW

fatbelly

Lots of people come out of IVAs and do DROs - you do have to wait till the IVA is terminated.

I thought HB can do DROs - as part of Think Money, but I may be wrong as their website says they can't

See what they say.

DorisTrousers

Think Money is part of Gregory Pennington I think, unless it has broken away.

FB is of course correct inasmuch as you cannot be in 2 forms of insolvency concurrently, and you may face a delay in coming out of your IVA in order to let HB complete the official termination process. Use the time to put the £90 (x2) aside so that you can minimise the delay between the IVA and the DRO's.

mwarby

As I understand it the IVA fees would be added to your debts and creditors can start adding interest and charges again. Be careful this doesn't take you over the limit, if it dies you'll need to save for bankruptcy fees

DorisTrousers

As IVA fees are collected from your payments on a preferential basis, should you leave the IVA then you won't face a bill from the IVA firm, or you shouldn't. I certainly have never come across such an invoice or bill.

Interest and charges can start to be added back on, but this is also a little unlikely, and if you time the transition from IVA to DRO right, then any amounts added should be insignificant anyway.

Pinkwhisk

Hi, Harrington have confirmed we can leave with no charges but to get advice from step change first. As we are in IVA step change said they can't help us till we are out of it which takes 30 days. My partner wants to make sure we are definatly OK for a DRO before we cancel IVA . Would you call step change back and pretend we weren't in IVA to get advice then cancel IVA? Or would ova show up to step hanger? X

fatbelly

I guess you're concerned about how your surplus income will be assessed.

Why not give National Debtline a ring and run through the situation?

Pinkwhisk

fatbelly wrote: »

I guess you're concerned about how your surplus income will be assessed.

Why not give National Debtline a ring and run through the situation?[/QUOT

Fatbelly - thank you. I will call them in the morning xx

Pinkwhisk

Hi, I called national debt line . They were helpful, but as I didn't have all my costs to hand couldn't really advise me properly. I'm going to ring tomorrow as its partners day off so he can help entertain baby while on the phone!

Anyway, my question is do they ask for proof of your bills? And is there a 'recconmended' amount to put down for food/entertainment etc ?

Thanks PW x