IVA

Drowning89

Hello,
I've signed up to the forum as wanted some advice. I recently contacted a debt consolidation company to see if I could pay all my debts off and have one monthly payment. Then advised because of my credit history I wouldn't be able to. I'm currently not actually paying my debt down just paying the min due and using it again for living costs. They put me through to the Financial support centre who were extremely helpful and ran through my options. They've advised an IVA. After looking into it, this is the best option for me and I want to go ahead with it. My only concern is that I've never heard of rhe Financial Support Centre and just a bit concerned that I'm using a dodgy company. The company I used for the debt consolidation was call Consolidation Express. 
I actually believe that I want to take out an IVA as would be much simpler and more manageable then what I'm doing now. 
Has anyone dealt with them before? Is there anything I should be wary of? Any and all advice welcome.
Thanks 

MissFlossy222

These companies always recommend an IVA - because they make money from them. There's nothing in it for them if you choose bankruptcy or a DRO.

I'd strongly advise you to contact a debt charity like Stepchange, Payplan, or Citizens Advice before you sign anything. They'll give you impartial advice. It may well be the case that an IVA is your best option but at least you'll know you're not getting ripped off.

sourcrates

By "debt consolidation company" do you mean a bank ? as only banks provide loans, I`m a tad confused by that description.

Anyway, with regard to the "Financial support centre", they advised an IVA because that`s what they sell, IVA`s.

The original company you contacted, I suspect was a debt management company (DMC) who have a "lead generator agreement" with this support centre company, and hey presto, we recommend an IVA, please sign here, and we`ll get right on it.

OK, so you need to stop and think here, never, ever take debt advice from companies that have something to sell you, an IVA may be the right choice for you, but other options exist.

An IVA should only be considered, if you are a homeowner, and have a house to protect, have quite large debts (30k upwards), and have a consistent and regular income, as you will be in it for 5/6 years.

If that does not describe you, then look at other options, and only take advise from those with nothing to gain by giving it, for example, people on this forum, and the debt advice charities in my signature.

A statement of affairs will give us a clearer picture of what your options should be.

Drowning89

Hey thank you for your advice. I actually have 36k worth of debt and continually falling behind on payments because min. Dues are so high. So just churning it and its getting worse. I can't take out more credit because my credit score is pretty much non existent. I have spoken with step change and this debt management company. I've gone through my finances with a fine toothpick twice which is a lot for me as I suffer with mental health issues quite seriously. So even doing that was a big step. I want to enter into an IVA. Its my  best option in my situation. I just wanted to make sure they were legit. I've looked at the insolvency practitioner directory and they are on there. I'm nervous but would be with any company because I'm having to work this out on my own and wanted to make sure they were legit before signing. I do and will have a regular income for the next 5 years. I suppose my only question is what is the danger here? 
Reading the contract, it's pretty standard and straight forward. It doesn't appear to have any hidden agenda. I have a meeting with the insolvency practitioner today, they have to look at the best interest for me and the creditors, no? Otherwise they aren't acting ethically? 
Sorry for the questions and long post just thought I'd give some context.

Grumpelstiltskin

Ethics and IVA companies are poles apart.

Do not sign anything today but do as we have asked and put up an S O A on here so we can point you in the right direction.

Nothing terrible is going to happen in the next few weeks so research by you now will pay off in the end .

You say you have contacted Stepchange, what did they advise?

MrFrugalFever

Entering in to an IVA could suit as opposed to BR depending on your personal circumstances, however, you will be legally bound for 5/6 years to make monthly payments in accordance to the annual financial reviews, of which will often breakdown where your money is being spent. If you fail to make payments or breach the IVA terms you run the risk of the IP and/or creditors petitioning for your BR anyway.

Read and digest any terms and conditions proposed before signing. When I entered in to an IVA I hadn’t quite considered every aspect and realised that there were certain things which had a profound impact on me that were to last 5 years (or until settled) under the binding constraints of the arrangement. Having a formal insolvency imposed on you WILL come with some very difficult challenges, some you may not even think of at first. 

You say you’re going to have a regular income for next 5 years, well, sorry but job security almost doesn’t exist anymore and the chance of redundancy is something to factor in whether you do believe it or not. In an IVA, this is consumed (with exception to 6 months worth to job hunt).

I would post your statement of affairs and detail exactly what is what before doing anything, no one on here knows you, but we’ve all likely been in similar situations or are going through some form of debt management plan so can help.

fatbelly

Drowning89 said:

 I want to enter into an IVA. Its my  best option in my situation. .

Why is that?