IVA

jcyanky270178

Hi I’m thinking of an IVA with Financial Support Systems - £60k
of Debt and hoping for agreement to pay £400 a month.

The IP have asked me to pay the £400 ahead of the creditors
meeting which is early April is this normal?

flipflopflo

Have you spoken to one of the free debt advice agencies such as StepChange or National Debtline or CAP?

Do you currently have a mortgaged house?

jcyanky270178

Hi yes have spoken to them, no I don’t have a mortgaged house

RAS

Do you own a house or other assets you are trying to protect?

jcyanky270178

Hi Ras no nothing else I’m trying to protect, I’ve thought about bankruptcy but it would have ramifications for my job hence the IVA seeming more appropriate 

RAS

Bankruptcy and IVA are both forms of insolvency, so you might be advised to take advice about whether an IVA would affect your employment situation.

Perhaps from your registering authority and/or via a trade union or employment group who can make an anonymous enquiry with your employer?

sourcrates

jcyanky270178 said:

Hi I’m thinking of an IVA with Financial Support Systems - £60k
of Debt and hoping for agreement to pay £400 a month.

The IP have asked me to pay the £400 ahead of the creditors
meeting which is early April is this normal?

Its not abnormal, the IP likes to show your creditors you are willing to pay you see.

You do realise that this company just sell IVA`s don`t you, they may mention other solutions on there website, but the whole thing is geared towards them selling you what they have to offer.

What job do you do that prevents you going bankrupt ?

Because normally, with 60k of debt, and no assets to protect, bankruptcy would be a no brainer.

Could I also ask what kind of debts you have, are they loan/credit card that type of thing ? are they all enforceable ? how old are the debts ? are you currently paying them ?

jcyanky270178

Hi,

debts are all credit cards, bank loans and payday loans and overdraft. I work in insurance, the debts are no more than 2 years and the payday loans most recent.

ive Been able to just about make the payments until
reccent but am at tipping point and FSS have said they can assist in getting monthly payments from £1800 to approx £400. I cannot afford the bankruptcy fee currently and my partner has no idea of the situation, the debts are all mine.

silly question how would I know if they’re enforceable?

wouls you not recommend FSS?

Grumpelstiltskin

Are you 100% sure bankruptcy would mean your job is gone?

You must check this out first.

What does your contract of employment say?

How have you managed to run up this amount of debt without your partner knowing?

You only have to miss 1 months repayments to pay the bankruptcy fee.

Do not jump into an IVA without more work, nothing terrible will happen in a couple of months.

Finally tell your partner.

jcyanky270178

Grumpelstiltskin said:

Are you 100% sure bankruptcy would mean your job is gone?

You must check this out first.

What does your contract of employment say?

How have you managed to run up this amount of debt without your partner knowing?

You only have to miss 1 months repayments to pay the bankruptcy fee.

Do not jump into an IVA without more work, nothing terrible will happen in a couple of months.

Finally tell your partner.

HI thanks for your email, I've checked my contract. Re the IVA having done the research so far it feels like solution whereby I can at least pay some the my debts off. I stupidly thought I could manage the debts because of my wages which are annually more than the debt but im having to rob Peter to pay Paul and getting nowhere with it all. I've cut all my cards up and now want to take some action on it.,.

sourcrates

If you have a large income, then perhaps bankruptcy is not for you, as that would mean an income payment arrangement for up to 3 years, which would take most of your disposable income.

It sounds to me as though you haven`t even missed any payments as yet, and are looking to dive straight into an IVA.

This is not usually a good proposition, look at it from your creditors point of view, one month they get there normal monthly payment, something they are accustomed to receiving, then all of a sudden they are being called to a creditors meeting to discuss an IVA, they may be highly suspect of this sudden change in circumstance.

Usually you would have a good 6-9 month history of missed or non payments before looking into an IVA, don`t jump into this because you think its the right thing to do.

In your case, with an income such as yours, I would be looking at debt management, you can choose to pay your debts at £400 per month if you wish, save a good emergency fund at the same time, so a few years down the line you can make settlement offers thus reducing what you pay, and the time over which its paid, you don`t need an IVA.