IVA

jcyanky270178

sourcrates said:

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.

Thanks for your words, I’ll do some more research, this month was the month when I wasn’t going to be able to make payments and had felt like the number of creditors was too many to liaise with individually in terms of a DMP. I was led to believe that the Iva agreement wouldn’t be a problem for FSS to agree on my behalf but when you out it like you have ie making payments and then being called to a creditors meeting I can understand why they may now go for it 

RAS

There's nothing stop you going to stepchange or National debtline in a few months and asking them to set up the DMP. And then taking it on yourself once things have settled down. 

Do get some advice on that as well; a lot of people start a DMP without either saving an emergency fund or waiting for the debts to default. All of which makes it more difficult to live without further credit and more damaging to their financial situation as the longer it takes for the defaults to hit, the longer it takes to get a clean record.

And DO talk to your partner. Whatever happens, you are going to need to rein in your spending. Unless they understand why the Seychelles, a good meal out or a new car, or whatever floats your boat, aren't options, you'll be damaging your relationship anyway and failing to tell them now may also destroy their trust in you.

fatbelly

And you will be on a public register with IVA or bankruptcy

jcyanky270178

Hi all took some time out on this to do the requisite research and am going to apply for breathing space via Stepchange and then set up a DMP with them, should be debt free in 8 years. Thanks for all your advices

RAS

It might be best just to stop paying, rather than use breathing space.

Debt are reported on your credit record for 6 years so the sooner they default the better. You may even find yourself offered discounted settlement arrangements in the later years, which will reduce the time it takes to clear the debts.

And mean-time set up two basic bank accounts (or one and a savings account). Get your salary and utility DDs transferred to one account and put what you would have paid towards debt into the other to build up an emergency fund.