Iva to Dro?

Lin850

Sooo, My circumstances have changed since starting my IVA. 

I have my baby due in november.. literally found out was expecting the day my iva started..
I opted for the Iva as at 23k debt did not qualify for Dro back in december when i first sought help to get out of debt. Otherwise i would have liked to have gone down the Dro route in the first place. 

Now i see that that the Dro limit has increased from 20k to 30k.. 
When i ho on maternity leave in october , i plan on taking 9 months and then any accrued holiday,. I understand about the payment breaks  etc, but i really see that being quite a stretch anyway living on the maternity pay ( as that decreases over time to  just the smp amount), i dont want to increase my iva duration any longer than it is - as a condition of my iva the creditors  opted to make mine a 6yr one not a 5yr one) 
i just wonder if i could end my iva and apply an be accepted for a dro as i really see my iva possibly failing, where as if i do the dro im being proactive  befor it fails? 

Any one have idea?

MissFlossy222

As you're so early into an IVA it may well be worth looking at other options. You'd need to let it fail and then apply for a DRO but please make sure you're eligible for a DRO first.

Do you have any assets?

Is your surplus income less than £75 per month? Will it be less than £75 a month when the baby arrives? 

MalMonroe

Hi, congratulations!

And why don't you contact one of the free debt help agencies?

StepChange is good. They helped me so much when I was in terrible financial trouble a few years ago.

They'll be able to tell you what your options are. Not only have the DRO conditions changed, so have your personal circumstances so hopefully you'll be able to discuss whether or not you can switch. I do hope so!  If you can then StepChange will help you.

Good luck    

Lin850

Hi miss flossy
and mal monroe, 
I dont have any assetts, litterally my car died in feb as the iva was in stages of being set up, an cld not afford to replace it , my mum kindly lets me use her car so am just a named driver on insurance. 

I can only see that my income wld decrease with the smp rate  even if i did take a payment break or too i still have a few bills to pay- not debt ones- and a toddler to cater for, 
i have used step change for my iva, they have been really helpful, and all has gone like clockwork,  i have voiced my concerns an was told to wait till the annual review to see what happens, - i dont know how likely it is that my monthly payments wld decrease? Does that happen? I pay £152 a month, ive heard that can go down 15% at their digression with out a meeting with creditors? But even then say when i do go back to work after taking mat leave, i dont know how its going to work
with shift patterns etc, i really feel a dro would b better. 

An i think i read on here before that the budget is different to an iva, so at the moment i have £152 ‘surplus’ higher than the £75  dro allowed, because they would say that shes not eligible as she can afford a higher payment, i have explained that correctly? But i see i. The future that changing so realistically i wldnt b able to afford 152,. Maybe i should just wait till the annual review, such a headache! Hope all is gd with yu !

 

sammyjammy

Is there any reason Stepchange didn't decide bankruptcy was an option?  An IVA is suitable for a discreet group of people and is commonly missold, its mostly for people with assets to protect such as property.

Lin850

I remember it being my decision ,  like it was made clear that i had decided against bankruptcy in the final paper work, i hmguess in my head an iva was better than being bankrupt when it came to other things like possibly moving abroad etc.. things have changed now so much so that is rules out,  bu not sure ..