IVA and options

philster_2

Good Afternoon

i am spinning. i got divorced 4 years ago - terrible deal but i get to see my children three time a week which was to be fair, all i ever wanted. I took the settlement i got which was 15K and used it as a deposit for my little house. Over the course of the last 4 years i have had to buy pretty much everything as i left the my old house with nothing and my property did need a fair bit of work. Now i have everything in my house, but like a complete idiot and i do blame myself, ive ran up :-
£5000 loan
and approx 16000 over three credit cards!!
The monthly payments are making it very difficult to make ends meet now.
I have contacted Step change who have told me i 'MAY' qualify for an IVA for which i am now gathering all my paperwork for in order to proceed. My creditors are in for a shock as i have never registered a missed or late payment in my life!
im just wondering what people think - im petrified but i dont currently see a way out of this and im not sleeping - any advise gratefully received

sourcrates

philster wrote: »

I`m just wondering what people think - I`m petrified but i don't currently see a way out of this and I`m not sleeping - any advise gratefully received

Hi,


Your choices as a homeowner, are either a Debt Management Plan, or an IVA.


It will depend how much equity there is in your home, and how much disposable income you have, whether you qualify for an IVA or not.


It can be a good choice, if a DMP will take more than 6 years to complete, then you should go for the IVA, you get legal protection from creditors, plus an end date, most will run for 6 years, as there is a remortgage clause in year 5, where you have to try to remortgage to benefit your creditors, however, most are unable to do so, and they get up to an extra year of payments added to the arrangement instead.


Do your research carefully before committing to anything.

National_Debtline

Hi philster


There's some good advice from sourcrates above. If you can complete a statement of affairs and post it back on here we can give more advice on which option is best for you. You can complete one here http://www.stoozing.com/calculator/soa.php.


Best wishes


Susie
@natdebtline