Debt Free After 15 Months Of IVA Payments

amyjaj

In June 2014 I entered into an IVA. My last payment into my IVA was in October 2015 after I was dismissed from my job and deemed unfit to work by the DWP. Today I received fantastic news. My IVA Company held a variation meeting with my creditors. They have accepted the payments that I made between July 2014- October 2015 as a full and final settlement of my IVA and my file is currently being sent to the file closer department! I'm debt free!

alltaken

Congratulations! You must feel epic right now.

amyjaj

alltaken wrote: »

Congratulations! You must feel epic right now.

I am, and really relieved

meepatme

I say well done

amyjaj

Thank you!

afruby

Hi,

In Feburary 2014 I started on an IVA, individual voluntary agreement. I was really struggling with paying back debts and wasn't to sure what to do.
I pay back my monthly payments without a problem and now I'm in a secure full time job.

I know that the IVA lasts 5 years so it'll end in 2019 and it stays on your credit file for up to a year later.

I'm saving for a house with my girlfriend but she has no idea I'm on a debt management plan, I got with her in 2015 and never mentioned it, even though we've talked about money etc.

Am i able to come out of the IVA and choose an alternative plan where I can pay my debts back quicker and get my credit score built up again so it'll help me secure a mortgage in a few years.
Or do I have to stick out the IVA and tell my girlfriend my circumstances?

I can afford to pay back more each month but it won't make a difference to the timescale of the IVA

It's causing me bad anxiety and I need to find a solution because I thought all of this was to help me, not give me more worry.

amyjaj

afruby wrote: »

Hi,

In Feburary 2014 I started on an IVA, individual voluntary agreement. I was really struggling with paying back debts and wasn't to sure what to do.
I pay back my monthly payments without a problem and now I'm in a secure full time job.

I know that the IVA lasts 5 years so it'll end in 2019 and it stays on your credit file for up to a year later.

I'm saving for a house with my girlfriend but she has no idea I'm on a debt management plan, I got with her in 2015 and never mentioned it, even though we've talked about money etc.

Am i able to come out of the IVA and choose an alternative plan where I can pay my debts back quicker and get my credit score built up again so it'll help me secure a mortgage in a few years.
Or do I have to stick out the IVA and tell my girlfriend my circumstances?

I can afford to pay back more each month but it won't make a difference to the timescale of the IVA

It's causing me bad anxiety and I need to find a solution because I thought all of this was to help me, not give me more worry.

It would be best if you went to your local citizens advice bureau, Or contacting the national debt helpline. Although nothing can be done whilst you are still in your IVA, as it is a form of insolvency done through the courts. Although bankruptcy doesn't last as long as in I VA they both stay on your credit file for The same amount of time and would be just as hard if not a bit harder to get a mortgage afterwards!

sourcrates

Hi Afruby,

I would stick with your IVA, as it affords you legal protection from your creditors, which means they can't hassle you.

Your credit file will not recover any quicker by using another debt solution, plus if you allowed your IVA to fail, your creditors could sue for your bankruptcy, and you would be back to square one.

There is also the question of the IVA fees which need to be paid, once there deducted, there would not be much left for your creditors.

Think very carefully about the consequences of taking this action.

afruby

Hi,

Thank you both for your advice. I'm going to stick it out and just get past it as best I can.
If I have to wait a few more years for a mortgage then so be it.

Thanks again

mwarby

Just to add, unless your very close to repaying all the original debts an IVA charges, being able to pay a bit more in will make no difference to the term. What you might find is however that you are tied into higher payments and struggle more when had times hit(car mot being classic)

Obviously if circumstances have changed, you should keep your IP / IVA company informed, but simply becoming more frugal doesn't count IMHO

adyj73

I think you should also come clean to your girlfriend. In past experience of my friends it is never good to keep these things from your better half ;-)

If she is a keeper she will totally understand and stick with you. Plus you won't get a mortgage anyway due to your credit rating and IVA so she is going to be hugely miffed if you keep this quiet and she finds you both the home of her dreams...