IVA question

superbez

Having already posted in the loan forum I have been pointed in the direction of this board. I have a debt total of around 10k and had been planning to get a loan to consolidate this with an easily affordable loan once my CCJ had dropped off (which happened this week) but it turns out I am not eligible due to my level of debt. I realise I was perhaps short sighted in thinking this would be an option but still stand by the fact that I would have been completely debt free in 5 years and the money I would have been saving by paying this new affordable loan would have been put away into a savings account for the future!

Anyway, that's not going to happen so I've taken a look at the StepChange site and filled all the questions in it has suggested I go down the route of an IVA. I have read that this takes 5 years.

My question is quite simple. There is a chance that we might come into a little money in the near future (we currently rent and the cost is astronomical down here in the south east) which MAY put us in a position to pay off the IVA and MAYBE have enough left over for a deposit for our first house. If this happens then 1, can I pay the IVA off and 2, how long will the fact I had an IVA remain on my file after paying off anything outstanding? I want to do all this properly and the reason I am on here right now is because I can't meet the next payments and I'm worried. Having just cleared a CCJ which has wrecked my life for 6 years, I really was hoping for a brighter future than the one I'm currently staring at!

Thanks for listening

sourcrates

Hello again,

How long, roughly before this windfall appears ?

The reason I ask is because an IVA is a form of insolvency, and would blight your credit file for another 6 years, if you can hang on, and make token payments to your creditors, until this money arrives, then you could avoid an IVA altogether.

CCJ's mostly occur when there is no contact between debtor and creditor, if your paying them something, via a debt management plan for example, then you should avoid that senario.

superbez

sourcrates wrote: »

Hello again,

How long, roughly before this windfall appears ?

The reason I ask is because an IVA is a form of insolvency, and would blight your credit file for another 6 years, if you can hang on, and make token payments to your creditors, until this money arrives, then you could avoid an IVA altogether.

CCJ's mostly occur when there is no contact between debtor and creditor, if your paying them something, via a debt management plan for example, then you should avoid that senario.

Hi again!

I really do need to keep my credit history as clean as I possibly can. I have worked so hard to get it to where it is and will do anything I can to protect it if at all possible. I feel awful using the word windfall but my wife's aunt and grandparents have all either died or on the verge of it all in the space of 2 weeks. It's been an extremely sad and difficult time. They all lived together in a house which MAY be left to her father, herself and her sister, we don't know yet as it's still ongoing There is of course no guarantee that this is what will happen but I think it's likely.

I'm due to pay a payday loan company £800 this month and if it wasn't for that I could get through the coming months. I had given some thought after posting this thread earlier and thought about defaulting on that (letting them know I couldn't pay) whilst paying the rest as normal.

I know I keep saying it but that loan was going to be all I needed to move forward, paying less and saving up.

What are your thoughts on this? Your advice really is much appreciated so thank you!

sourcrates

I think whatever you do will negatively effect your credit file.

Just having payday loans is a big red warning sign to potential mortgage lenders just on its own.

In your position, here's what I'd do, for now, stop all of your unsecured creditor payments, do whatever is nessessary to stop them taking payments, cancel DD's, any debt cards the payday lenders have on file for you, then, work out a budget of what you can afford to repay to your debts each month, write and inform your creditors of your situation, then offer each creditor a pro-rata payment from that pot.

It's called a self managed debt management plan, normally I would advise going to stepchange, but as you may be due this money, it would be easier for you, to deal with it yourself.

If you do get this money, you can then settle your debts from the proceeds, if for any reason you don't, then a re-think of the situation will be needed.

superbez

sourcrates wrote: »

I think whatever you do will negatively effect your credit file.

Just having payday loans is a big red warning sign to potential mortgage lenders just on its own.

In your position, here's what I'd do, for now, stop all of your unsecured creditor payments, do whatever is nessessary to stop them taking payments, cancel DD's, any debt cards the payday lenders have on file for you, then, work out a budget of what you can afford to repay to your debts each month, write and inform your creditors of your situation, then offer each creditor a pro-rata payment from that pot.

It's called a self managed debt management plan, normally I would advise going to stepchange, but as you may be due this money, it would be easier for you, to deal with it yourself.

If you do get this money, you can then settle your debts from the proceeds, if for any reason you don't, then a re-think of the situation will be needed.

Thank you very much for your time today, what do you think about what I suggested earlier about flunking one of the accounts and keeping the others happy? Would this be better than hitting all of them with the news? As previously stated I might be in a much better position in a month or two's time?

sourcrates

superbez wrote: »

Thank you very much for your time today, what do you think about what I suggested earlier about flunking one of the accounts and keeping the others happy? Would this be better than hitting all of them with the news? As previously stated I might be in a much better position in a month or two's time?

Yes I would say go with whatever works for you to keep food on the table.

Remember unsecured debts come bottom of the payment list, go with whatever you are comfortable with.