Been stupd - need advice re: IVA

leninspot

Payplan have suggested I move from a DMP to an IVA which I'm happy about BUT I took out a capital 1 card (I needed car repairs) and didn't tell them. Now they'll do an Experian credit check and no doubt will find out.
What effect is this likely to have on my moving to an IVA? Will I be in very big trouble?
Any advice gratefully received.
Thanks

National_Debtline

Hi

I don’t know if Payplan have a particular policy on this, but I don’t think it would be an issue as the IVA would be a fresh agreement based on your circumstances at that point. It would ultimately be up to your creditors to vote.

I recommend taking some independent advice from a free advice agency on whether an IVA is the best option for you now. It’s good to have a second opinion on a legally binding commitment.

James
@natdebline

sourcrates

A DMP is not a regulated agreemt, you have broken no rules by obtaining further credit, forget that aspect of it.

How much is your debt, and how much are you paying at the moment to service them ?

leninspot

My debt is just over £30,000 - no chance of paying it off in my lifetime (I'm 65) at £40 per month but I've agreed I can pay £67. PP say if I go Bnkrpt, based on my income, I'll still have to pay something. So at the moment on a DMP there is no end in sight whereas on an IVA it feels like there is light at the end of the tunnel so I don't want to foul it up,

sourcrates

leninspot wrote: »

My debt is just over £30,000 - no chance of paying it off in my lifetime (I'm 65) at £40 per month but I've agreed I can pay £67. PP say if I go Bnkrpt, based on my income, I'll still have to pay something. So at the moment on a DMP there is no end in sight whereas on an IVA it feels like there is light at the end of the tunnel so I don't want to foul it up,

Are you a homeowner ?

Do you have other assets ?

leninspot

No, not a homeowner and no assets.

sourcrates

leninspot wrote: »

No, not a homeowner and no assets.

So why IVA ?

You only take an IVA to protect assets such as a house, you would be better served going bankrupt.

You would be discharged in a year, do your budget correctly, and an IPA is unlikely, an IVA would be 6 years in your case, do you really want to still be paying this at 71 ?

In your situation bankruptcy would be your best solution, it's all done online and by post and phone, no longer a requirement to appear in court, if you can muster the fee, it's a no brainer.

Get some advice from National Debtline see what they say.

leninspot

thanks - will seriously consider what you say. But why would PPlan recommend an IVA - I'm confused????????????? The bnkrptcy cost would be a big problem!

sourcrates

leninspot wrote: »

thanks - will seriously consider what you say. But why would PPlan recommend an IVA - I'm confused????????????? The bnkrptcy cost would be a big problem!

Let's just say fees are high in IVA's, they can be lucrative.

See what National Debtline would recomend.

leninspot

||Thanks - will do.

EssexHebridean

One thing you must also do is get a proper working budget in place. You own a car - it will at some stage need repairs, and you need to ensure that you set money aside for that contingency, along with an emergency fund in case your budgeted amount doesn't quite get there. If you do go down the route of bankruptcy credit isn't going to be an option for you so you really need to get to grips with this.