IVA help with a mystery

marko83

Hi,

I have posted a few times on here, and been reading lots of different posts, trying to find a bit of advice around an IVA. I have found other of helpful comments throughout.

I had it in my head that a DMP was the best way forward but have spoken to a guy from the debt advice service, which was an advert I seen on social media. This is the first time I've spoken to someone about an IVA, and actually seems like a better, quicker way to get to that light at the end of the tunnel. 

After reading posts on here I'm cautious that the company can make more money from signing you up to an IVA and ofcourse are going to try and push that product. I think I've been that blind sided that I was going with a DMP I almost disregarded a IVA. I suppose with  a DMP I thought that it was not as intrusive but based on calculations I'd be paying my debt off for well over 12 years.

My debt is currently 63k over multiple creditors and doing an expenditure check I can pay towards my IVA DMP about 380 pounds affordably.

There are a few parts of the IVA I'm unsure of. The mystery that it probably is "to good to be true"

 The main one being what does the yearly review entail?

And on your affordability calculator or SOA/ monthly living, if you are saying you spend 800 per month on shopping but actually over the course of the year average at 600 per month will that be deemed as hiding money from the IVA?

on an IVA can you save money? As in if your monthly shopping bills were less than put to your IVA can you save it, without it being taken from you?

I'm a home owner with a LTV of 70% currently, but due to my credit score I wouldn't be able to remortgage so would expect the IVA to last 6 years. Is there a way they can force you to release equity? If you can't get a remortgage due to a poor credit score.

I can find some information on IVAS just can't quite see anything on the annual check and the above questions. The guy I was speaking to today, it seemed so easy to do, and said the annual check was to see if I could afford it rather than go through if I'm spending what I have said.

Very confused  and as always would appreciate any help on the matter.

Thank you for reading 

Grumpelstiltskin

Remember the guy you were speaking to was a salesman not a debt advisor.

Hus first interest was his sales figures not what was best for you.

I am not saying forget an IVA what I am saying is do much more research before committing to anything.

marko83

Absolutely, and have read a lot of comments on here about that also. Just curious about the questions, but 💯 percent taken on board that research is needed before commiting. Thank you

fatbelly

Why not have a chat to stepchange? They can also do IVAs if appropriate.

You could also do some research and go to an insolvency practitioner of your own choosing rather than 'to a guy from the debt advice service, which was an advert I seen on social media'

As a homeowner with equity, 63 k of debt and surplus income that will take 12 years to clear the debt, you are in the ball park for an IVA, as long as you understand how they work.

marko83

Will certainly be doing some homework the next few days, I read a lot on the stepchange side of things but was put off about iva as per the questions I realised really but just want to get on the right path and debt free...thank you

Grumpelstiltskin

Great Mark, keep coming back if you need any help. It is an important decision and you need to be sure you have made the right one.

marko83

It most certainly is, and will certainly keep reading, a lot of comfort can be found knowing we are not alone.

dizzyblonde82

I'm getting near the end of my IVA, with Stepchange, and the annual checks are focused on whether your expenses have changed, you provide wage slips and bank statements to show income, from employment and/or benefits. On the bank statements I just highlight the main bills CTax, electric/gas etc so they can verify the amounts on the agreed budget.

In regards to checking what you are spending, I've not been queried about how much I spend on groceries or anything else and whether I had anything left over each month.

My wages have fluctuated whilst in the IVA due to secondments starting and ending, promotion etc and they have been very good at adjusting the monthly payments inline with the changes.

sourcrates

On the face of it, you are a perfect customer for an IVA, large debts, homeowner, with a reasonable income, you tick all the boxes.

The only problem with these things is the regulation is sadly lacking, anyone can set up as an IP and sell them virtually.

This means the fee`s charged can vary quite dramatically, so my advice would echo fatbellys, go via Stepchange, the IP they use charges the least amount in fee`s, and should be fair and transparent with you.

Yearly review.

Basically a review of your financial situation, if your wages have gone up, so do your payments, just a basic check on your circumstances.

Savings.

Your spending is not checked up on, and you can save a small amount through your budget, or by doing as you describe above.

Re-mortgage time.

Most IVA`s include a clause where by in year 5, you must try and re-mortgage your property, if for any reason this cannot be done, you will usually have to make payments for a further year, maybe two, dependant on what your IP says.