Starting IVA and change in circumstances

Owllover

Hi, I'm hoping for some advice on my situation. I've got around 32k in debt and after considering the options I'm going for an IVA via StepChange. I'm at the stage where I've had the initial meeting, and they are waiting for me to send off some final documentation relating to student loan and pension stuff. However, my living situation will hopefully change soon. I currently live with my parents but want to move in with my partner. This will be more expesnsive, however, we've budgeted and it looks ok - with less money left over for the IVA payment.


My question is, is it worth pushing ahead with the IVA now then trying to get it reviewed and change the payment amount, OR wait a month or two until we've moved in and start with those expenses (obviously utilities will be estimated as we won't know)?


As a side question, we're wondering on whether to get a joint tenancy or just in my partners name, so any thoughts on that would be great too.

mwarby

It sounds like the creditors meeting hasn't happened yet. I would be talking to step change to ensure the proposed IVA is the best solution and that creditors are seeing the full picture

Pressing ahead now, without updating step change may give you future grief and uncertainty, as I think if contribution drops more than n agreed amount (10% I think) they have to back to creditors. Even if change isn't enough for that, future changes may push you into over that

Most of time creditors are helpful, but a big change of circumstances early on in IVA may not go down too well

One advtange of bankruptcy is once you start it's very difficult to fail, IVAs can and do fail and with them running 5-6 years there's ample opportunity. Obviously there maybe reasons why an IVA is preferred

DannyPearce90

I would make sure they know your future financial situation now, as any changes may be difficult to implement before your 12 month review.

Can I ask why you opted to go with Step Change. I understand they are a "charity" but if you actually look at their fees and they outweigh the higher volume IVA providers.

Their site says:

No matter who arranges your IVA for you there are costs and fees involved. However these vary between different IVA companies.

So it would make perfect sense to use a comparison site and make sure that you are picking an insolvency practitioner with the lowest fees?

The next result in google is a private company when you search for "best iva companies". Worth a shot as they say they can give you details of companies that start at £80 a month rather than Stepchanges £120!

Hope it helps!

fatbelly

The website you linked to is managed by Right Protect Limited.

It's definitely not an independent site. They appear to be some kind of lead generator

It is a major problem for people to know who to explore IVAs with when everyone seems to want to either sell their own product or refer you on and receive fees for doing so - and there is little published reliable information on failure rates and customer service, for instance.

Debt Camel has written about this here

https://debtcamel.co.uk/choose-iva-firm/

fuming14

Check creditfix. They are good as long as you keep up with your payments. When you have an IVA, be prepared for your banks to reduce your banking services. You can get more information from the IVA people. Usually, they don't tell you anything about the effects having an IVA may have on your bank accounts.