credit fix iva

robmax72

just a bit of general advice required. The backstory 26k debt,spiralled no payrise in  yrs,Took iva ,was paying £8-900 a month now paying £178. Got new job wage went from 57-66 and plenty of overtime. However our rent increased car pips lots bills etc more.ive payed around £1800 so far.
my question? after reading so many horror stories of folks whom way into iva get in breach so then have to pay fees and full amount of debt,and or extortionate rises in fees is it worth seeing through and continuing or bailing and taking fees on chin?
AT this stage im resending 3 wage slips/bank statements and expenditure forms im filling tommorow and am of the mind set to stick with depending on new amount they decide.
sub question.our 2 cars we need for work and have approx 1.5 yr to run,the final payement is 3.5k one 1.5k the other so from jan i need to pay £400 ott a month so they dont take cars back at end, Can i add this to expenditure as were stuffed without them?
thank you in advance for any advice

sourcrates

You earn £66,000 pounds a year with plenty of overtime, have I read that correctly?

If that is the case, and you rent, then an IVA was not the best choice to make.

You may have paid £1800 so far, but the amount in the IVA pot will be a lot less than that, as a lot of the fee`s are taken within the first 12/18 months from your payments, so there won`t be very much to pay to your creditors at present.

Standard practice is for payments to be disbursed to creditors usually near the end of the arrangement, once fee`s/VAT/interest/and any other charges have been taken.

The cars I don`t know about, if you add them to your expenditure, will there be enough disposable income to maintain IVA payments ?

Also don`t forget about the re-mortgage clause in year 5, you rent, so no re-mortgage, but you will get an extra year, at least, of payments instead, its quite likely you will be paying for 60 or 72 months here.

Grumpelstiltskin

O dear why didn't you come on here before you took out your IVA?

Now were you taken in by ads on social media?

I hope you realize now it was the worse decision you could have made and it could be messy trying to sort it out now.

fatbelly

If you were near the end of your IVA there would be a case for seeing it through.

But it sounds like you are maybe only 6 months in

I suspect, with your wage increase, they will want a steep rise in monthly payment and will not take the cars into account.

Wait until you see the IP's proposal for the rest of the term, but I think you are going to be more flexible by dealing with this outside an iva.

robmax72

Hi all,
Thank you so much for the replies.Im in a pickle for sure.yes I was taken in by online help,was paying £8-900 and sinking he said £178 I was like rabbitt in headlights.The first year will be done in February. In November we had a no fault eviction order and we'd been renting over 5 yrs n trusted but they case built and kept our£1475 deposit on garden large country one they said 3k to put right.
So my first big overtime wage was eaten by deposit and rent in advance.i had to get friend to risk guarentour me because I had iva,we was nearly homeless.move in and there's then sprung a planning application for bunglow demolition, hopefully itl not pass as lots of objections,I was on edge of breakdown but have to stay strong for wife n 3 kids 1 autism possibly my youngest also.
Anyway enough of my sob story I need to find a way out of this mess.with overtime some months i take home 5-5.5k.So I thought they'd just even out on next review however now my heads in better place have been looking up and I was supposed to tell them immediately,so I'm probably in breech,and have no savings to speak of.i have 1 year to find 4.5k for end of pcps,if not no car=no job no kids to school.
What is my best way out?or less worse?
I don't want to go bankrupt I wish I could just deal with creditors alone via stepchange or something like my wife has but Heaven knows how much more debt will be piled on in iva costs n charges.to date I've paid £1800ish.
Any help very very welcome I'm in a tight spot

robmax72

To add.
Wasn't always earning this I started new job last October as I was stuck in a job with no raise for 5 years so I was robbing Peter to pay paul which got me in this mess.

sourcrates

With that kind of money coming in, and only a year into the arrangement, I think fatbelly and I will be singing from the same hymn sheet here, you would be a lot better advised to allow the IVA to fail, and deal with your creditors individually, because I can tell you now, currently you will repay the full 45k, plus all the IP fee`s, interest, VAT etc etc, there will not be any write off here.

Now a potential consequence of IVA failure is bankruptcy, but that would be a very rare occurrence, usually owning an asset such as a house, would possibly trigger that response, but you should be OK.

Non payment is the usual approach, it can take a year or so for the thing to fail completely, plenty of time for you to save a settlement fund, so when collection activity starts again, you are in a much stronger position to take advantage of any settlement offers that are made, and indeed make some yourself.

Hopefully 18 months down the line you can be debt free.

robmax72

Thank you so much.Thats my way forward.Cars on pcp ,rented house,just own furniture so there's nothing really they can take even our bikes are cycle to work scheme. 
So I'll cancel direct debit.
Do I inform creditors?and creditfix or just cancel and await thier wrath?
And the creditfix fees obviously they're eat the £1800 but on top is it likely to be 5-10k?
All I'll be able to do is offer a monthly amount.Very frustrating the conmen that get you into this are like window salesman in the 80s.
Thanks again

fatbelly

You just cancel whatever payment method you are using with creditfix.

The IVA will fail but it will take ages - maybe a year. In the meantime you are protected from any action and it is creditfix that will inform your creditors when it happens.

So you can concentrate on sorting out the cars and saving an emergency fund.

Then we can help you with a plan to deal with the nonpriority debts.

robmax72

That's great thanks mate,going to get a kip before work later I didn't get a wink last night kept ruminating. Really appreciate 

sourcrates

IVA`s do have their place, but not in your circumstances, the main issue is lack of regulation, which means many are mis-sold in order to take advantage of the lucrative fees that can be charged.

And to be honest, most people do not understand how they work either, which is clear from the number of posts on this forum complaining about them.

Good luck, come back if you need further help with this.