Change in debt solution advice please

Delidi

Hello I've got an iva just over a year now.. My circumstances have recently changed due to Ill health so a reduction in my income. My iva payment hasn't changed though but one of their people suggested I would be eligible for a DRO which it seems I would be but unable to get any information as stepchange ECT cannot give me debt solution advice will in an iva! So a few questions if I terminate my iva is it that simple can I just terminate? What happens in the between time of iva termination and setting up a DRO? Any other useful information is be grateful thanks Diane

Sonic101

Hi there
Sorry to hear about your health problems.

Is there any particular reason why you entered into an IVA? They're usually only recommendable for people with a large amount of Debt (say over 30k) and with assets (such as a house) to protect? 

The main criteria for a DRO are:
- under 30k worth of debt; under £2k worth of assets (including cash); a car under £2k (you can have a car up to this value as well as assets); surplus income after all essential spending must be under £75 per month. 

If you don't meet the criteria for a DRO then bankruptcy is another option (sounds bad, but in reality it's just another form of insolvency so doesn't really look any "worse" on you file than an IVA or DRO); or even a Debt Management Plan.

Probably the best thing to do at this stage is work out your income and expenditure - if you use this site https://www.stoozing.com/soa.php - you can save the data and also choose "MSE format", then post it here, and people will be able to give you advice/feedback based on that. 

Good luck! x

sourcrates

Just to add, to fail your IVA you just stop paying it, it can take a while to filter through the system, 6 months is not uncommon, your IP has to officially fail you, and wind up the arrangement.

Once that is done, you can look at alternatives, well there`s nothing to stop you looking now, the DRO criteria has been provided for you above, if the shoe fits, then fine.

The collection process will slowly kick into gear again, if your IVA fails, that may take a while as well, debt collection is quite a slow process.

Official guidance states creditors can make you bankrupt if your IVA fails, whilst technically true, it never happens, normally the collection process just kicks in again, you have plenty of time to sort out a new strategy.

Delidi

Thanks for the replies I got the iva because I was paying a lot out and then one of the debts wanted me to start paying £350 and that topped me over . My total debts are 12000 and at the time I realised they were trying to make the debt as large as possible for them to make their money but I was just so relieved to only have to pay a lot less. I was surprised when it didn't change but my income did and they were aware of my situation and it was one of the I've people who suggested t that I could be considered for a DRO. So I basically just stop paying and look into my other options? I rent my home and don't have any assets or savings.

fatbelly

Have a look at this

https://debtcamel.co.uk/end-iva-change-to-dro/

Delidi

Thanks fatbelly that's brilliant my circumstances covered in the first paragraphs