IVA info please

uncertain_mum

Hi, I have £8,300 debt I have had to give up work for health reasons and can no longer afford to repay my debts . 

I have always worked and am worried about doing this . 

The man I spoke to made it all sound very easy . 

Is there anything I should look out for before signing ? 

Many thanks 

Grumpelstiltskin

Two words barge and pole.

An IVA is not suitable with such a relatively small debt.

Do not sign anything until you have spoken to one of the free debt charities, Stepchange etc.

The man you spoke to is nothing but a salesman, he is only thinking about his sales figures not what is best for you.

Hold on until the experts on here are along.

sourcrates

Agreed, your debt is far too small for an IVA.

IVA`s are mainly meant for homeowners with very large amounts of debt, who cannot go bankrupt as they have assets to protect.

For everyone else, there may be an alternative option, DRO, or DMP, dependant on your circumstances.

Please take advice from one of the free debt charities who are not trying to sell you something.

IVA`s are mis-sold on a massive scale, due to the lucrative fee structure.

RAS

Do not sign up for an IVA. 

They are suitable for people with a house or other high value asset and over £30K worth of debt.

But the fees are often in the £9K range which means they attract companies who encourage other people to apply "for this government approved scheme." Tosh.

Speak to one of the debt charities in sourcrates' signature and take their advice. If you are going to be on benefits, it's unlikely that you'll have much excess income and unless you've got an expensive car, a DRO or DMP might be more appropriate.

fatbelly

uncertain_mum said:

Hi, I have £8,300 debt I have had to give up work for health reasons and can no longer afford to repay my debts . 

I have always worked and am worried about doing this . 

The man I spoke to made it all sound very easy . 

Is there anything I should look out for before signing ? 

Many thanks 

Yes - very easy to get into and difficult to get out of as it's a formal declaration of insolvency, and probably not the most suitable one for you.

However, we know very little about your circumstances.

If you could complete a statement of affairs (link is to a calculator) that would give us the info we need