IVA experience wanted - Desperate to sort out huge debts :(
in IVA & DRO
8 replies 367 views
Hello! I'm new to this but I'll try to keep it short....
In 2017 & 2018 I took out two large personal loans to help my husbands business. It didn't work, the business ceased trading and I was left with 51k debts. Within 18 months we we're struggling to make the contractual payments. I contacted CAB who helped me out with a budget and proposed a reduced figure to both loan companies (an informal DMP if you will). Thankfully they were accepted and I've kept them up as agreed for just under 12 months. One has been sold out to a debt collection company, but otherwise everything's remained the same.
We bought a house 6 years ago with the Government Help to Buy scheme. We started paying back the Help to Buy last year, with a view to remortgage to include it this year. We've had our meeting recently. I thought being in arrears/default of the loans might mean we can only get a high rate/not many lenders to choose from, but it turns out we absolutely can't do anything with the Help to Buy until I - 1. Clear the arrears 2. Go back to paying the contractual rates & 3. Remain out of arrears for at least 2-3 years.
My problem is the debts at the moment are around £41k and paying back the most we can will take us 29 years. This means we'll never be out of arrears and never be able to remortgage/include the Help to Buy or even move house. I've done ALOT of IVA research, I've spoken to CAB, Business Debt Line & numerous IVA companies. The way I see it, my credit file is ruined for 29 years under the current arrangement...but would only be ruined for 6 years (+2/3 years rebuilding time) if I was to take out an IVA.
Is there anything to loose? Whats the real risks? Is it the best option for me? Is it too good to be true?
Honestly I'm so torn but feel like I'm screwed either way.
Any experience would be helpful, any hidden twists to IVAs/things I should be aware of etc.
Thanks so much in advance!
P.S I'm self-employed, my husband is employed. The debts are in my name only.