Should I carry on with my IVA?

davecollins1992

First post on the forum so hello to everyone,

I took out an IVA around 8 months ago for debts that were around £12,000 as I spoke to Harrington brooks and they had said that it would only cost me around £98 a month. Turns out that they contacted me after their meeting with creditors to say that it would be £173 a month, which I was shocked about but being the situation I was after my parents divorcing, having to move and then pay more rent, car insurance and general bills, I felt it was the only option I had. Thing is that it doesn't leave me very much a month to do anything or pay for things that may break on my car or anything else unexpected, For example my car has an oil leak that I have tried to fix but hasn't worked, and I can't save any money to buy another more reliable one, I've cancelled holidays that I thought I could afford but then something happens that needs money to put right, numerous other things crop up too.

I'm not going to earn any extra money anytime soon and I can't seem to get out of the situation I'm in, I feel like I was sold into an IVA and felt pressured by myself to take the easy option of one payment. Now things don't always come down in price and insurance at my age isn't cheap and I'm just trying to get a grip back on my life since things changed a lot last year.

I'm just thinking I should fail the IVA and move into bankruptcy or a DRO (from what I have heard that with either of these methods my debts could be cleared after 12 months) I have spoken to independent debt advice before but wasn't sure which was for me. I could speak to them again but I just want a fresh start and the lowest monthly payments that I start again asap with my life, does anyone know what I could do or what route they took in my position with an IVA. The stress hasn't gone away which I thought this would have meant I came out better off financially getting into an IVA

foxy-stoat

Your debt is not high enough for an IVA - you will pay over £10,000 on £12,000 of debt in the next 5 years - I think you were miss-sold, a DMP would of been better. In an IVA you shouldnt be able to afford a holiday, just so you know. Speak to the IP and explain your situation or maybe one of the debt charitys for your options.

On the plus side, being in an IVA makes you learn how to budget and manage your money and manage your spending over a long time. It may be the best thing for you to see it out - if you fail they would likely make your Bankrupt if you couldnt go into a DMP - that would have its own consequences.

Good luck and keep the thread updated.

sourcrates

To give you a proper answer, we really need to see an SOA (statement of affairs).
You should of been available (on the phone) whilst the creditors meeting was ongoing, they are supposed to ring you to get agreement on any changes, before they are set in stone.

Depending on your SOA, a debt relief order may of been more suitable to you.

Any debt solution must be affordable, if its not, then you have been poorly advised, if your IVA were to fail, you could obtain a DRO fairly quickly, but you need to speak to one of the debt charities in my signature to see if you would qualify or not.

davecollins1992

I guessed that I wasn't in enough to debt to make a proper use of an IVA, I think I saw it as the way to just get all of my debts paid in one easy payment. But reading the replies I agree with you both and that I should speak to debt charities more, they have said before that they couldn't comment on it as I'm in a legally binding contract I think it was they said. As for the holiday it was one of the super cheap ones from holiday pirates but I didn't want to fall behind with payments. If I avoided the IVA could I have stayed with Lloyds bank and what would this do to credit for me to fail the IVA and then get a DRO or DMP?

I agree that the IVA has taught me to budget my money a lot better already so in a way I'm glad I've done it for that but I will go back to my IP and ask for my options, would everyone say that avoiding bankruptcy is a good idea?

Statement of affairs? My income and outgoings? Sorry probably a bit of a noob question for me to ask. Yeah I wasn't really kept up to date on the phone I was just told that £173 is the only figure they would accept and then not advised to do anything else other than take it or don't and let creditors come after me further. I will contact one of the debt charities and explain fully what the situation is thank you guys