Iva advice

Peanutbuttertoast Forumite Posts: 12
First Post
I am I am considering starting an Iva via step change and I am just after any advice from anyone who has been there/going through it.
debt is between 20-25000. DMP not recommended due to the time it would take to repay.
im worried about my budget not being accepted with the IVA and how it may effect my bank account (bank is not one of my debts).
I work in insurance but don’t know if my job would be effected? We are not credit checked so I assume not?
I also wondered do they check your earning via Hmr  every month etc or do you have to provide bank statements?


  • JCS1
    JCS1 Forumite Posts: 5,232
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Do you have any assets such as a house to protect?

    You will also need to check your staff handbook or similar about insolvency
  • fatbelly
    fatbelly Forumite Posts: 19,186
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    If you are a homeowner, what has been explained to you about releasing equity in year 5?

    If not, why are you not considering a DRO or bankruptcy?
  • Peanutbuttertoast
    Peanutbuttertoast Forumite Posts: 12
    First Post
    I had a conversation with step change IVa today and they actually suggested a DRO. I am not a home owner, I rent via the council.
    I am feeling abit overwhelmed can anyone explain the DRO process and what information they will want from me? Do they check all my bank statements etc? 
  • fatbelly
    fatbelly Forumite Posts: 19,186
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    They have to be done through an individual who is an approved intermediary. I think stepchange are winding down their provision so if they will do one for you that's good.

    Rather than write an essay, there's an overview here

  • sourcrates
    sourcrates Forumite, Ambassador Posts: 27,657
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Its quite a straightforward process, it requires a little bit of effort on your behalf, but nothing too strenuous, the Debt Camel site linked to above is an excellent source of information.

    Much easier and simpler than an IVA, and of course is over in 12 months.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • RAS
    RAS Forumite Posts: 31,928
    Part of the Furniture 10,000 Posts Name Dropper
    If you are a tenant and your debt is below £30k, you should explore a DRO.

    There are a few factors that might affect your decision, like if you have an expensive car. So it might be worth talking to CAB as well because they are still offering DROs.
    The person who has not made a mistake, has made nothing
  • ManyWays
    ManyWays Forumite Posts: 138
    Third Anniversary 100 Posts Name Dropper
    It may be you won't qualify for a DRO because your surplus income is too high at the moment. What IVA payments is StepChange suggesting?

    If the payments are less than £125 I suggest talking to your local Citizens Advice and seeing if they think you would qualify for a DRO as they asses your surplus income as less than £75. 

    If you dont qualify for a DRO bankruptcy is probably a better option for you than an IVA. In bankruptcy you only have to make payments for 3 years not 5 and the payments can be reduced to zero if necessary if your expenses go up or your income falls. A lot of IVAs fail or have to be extended  :'(
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