How bad is an IVA?

deltofe93

Grumpelstiltskin said:

deltofe93 said:

The reason they suggested an IVA was because lenders weren't guaranteed to agree to a DMP, and can still add interest charges over the course, and that they can still come after you legally even with the DMP in place. 

Of course they would say that, like I said all they are interested in is their fees.

I mean pigs might fly, just about the same chance of a creditor not agreeing to a DMP and in fact they would easily accept what you can pay them, they are not going to refuse money.

Please don't fall for this carp they try and spin.

Ok... would you know if it is too late if I have signed the agreement and they have the meeting next week?

With the IVA I have been able to bring my payments down to £122 a month. 

I can only imagine the creditors would agree because they would be paid more than they would via the IVA as Creditfix would take more fees, whereas the DMP all monies go direct to them. 

I'm going to call StepChange first thing tomorrow to see if they can help me! 

Brie

deltofe93 said:

Re the DRO - my car is worth just over £2k according to online vehicles of similar makes and models so I wouldn't be eligible.  

And I do have a horse. She's not worth much but her monthly expenditure is. I tried putting her up for 'loan' but no one was interested. I know I sound ridiculous as a horse is a luxury, but selling is not an option, she has dragged me through the hardest moments this year and I would be severely depressed without. 

Are you sure about the car?  Might be good to double check. I was dealing with someone who during the time it took to get all the information needed to put together a comprehensive budget the value of his car had decreased just enough for him to squeak through.  

And while a horse does seem a luxury it sounds like it (s/he) might qualify as a support animal essential for your mental health.  I've met a few people who have multiple pets, some with complex medical conditions that are expensive to deal with and none of them have had to give them up.   

Basically as others have said - an IVA doesn't sound the right route to take.  Talk to someone else now before it's too late.  StepChange does DROs.  So does CMA who do face to face meetings as well as working via phone.  And also if you post an SOA here there's advisers that will be more than willing to help you get things progressed. 

RAS

deltofe93 said:

The reason they suggested an IVA was because lenders weren't guaranteed to agree to a DMP, and can still add interest charges over the course, and that they can still come after you legally even with the DMP in place. 

Ye goods and little fishes.......

The creditors aren't quaranteed to agree an IVA.

Interest is stopped on debt that is defaulted, you just make sure that that happens before you start the DMP! So don't jump straight I to the Stepchange fire, wait a while.

Once the debts are defaulted you start paying them a small amount that you can afford and it's wholly flexible, unlike an IVA.

Do you really want to be up ***Creek when your horse has a major vets bill? As there's no space in the budget for a horse.

P.S. Don't tell Creditfix about full and finals. That's a few years down the line when the creditors start offering you a 25% discount to settle the whole debt. Sit tight and you might get 50-75% off. That way they still get more than from an IVA.

deltofe93

What happens if they do agree to the IVA? That means I have to go ahead right? 

But if I try to stop it now I have more room for negotiation with a DMP? 

Grumpelstiltskin

Look the only panic you have at the moment is to get the IVA stopped.

Once you have done that don't rush straight into a DMP with Stepchange.

If you stop paying nothing is going to happen despite what Creditfix have told you.


Once you are sure the IVA isn't going to happen then fill in a SOA
SOA Calculator (lemonfool.co.uk)


It needs to be honest and detailed, format it for MSE and copy and paste on to this thread.

Then the next thing we will probably advise is to stop paying, just cancel all the direct debits and we will tell you the next step.

sourcrates

IVA`s are mainly for homeowners with an asset to protect and debt too large to service, who cannot go bankrupt.

With your relatively small 13k of debt, a DRO or DMP would be far more suitable for you.

There should be clause in your IVA which allows a cooling off period, I would strongly suggest you read and implement it before you make a mistake you will regret.

Lenders do not have to agree to a DMP, you make the reduced payments anyway, that will hasten the account defaulting, which stops interest and charges automatically.

If a creditor objects to what you offer in payment, they simply sell or assign your debt to a collector, who will be more than happy to take your money.

You should not be swayed by the "worst case scenario script" the IVA pusher reads to you.
They just want to sell you an IVA, period.

fatbelly

I don't think there is a cooling-off period with IVAs

The op will need to write to Creditfix to ask them not to proceed with the proposal and ask for a 12-week delay to seek independent advice.

To be fair, until we see the detail we don't know what will work best but this does sound like another case of mis-selling

stu12345_2

https://www.iva-advice.co/can-i-change-my-mind-on-an-iva.html#:~:text=Due to its formal nature,your IVA to become unviable.

open link then scroll down

deltofe93

Does this help? The IVA has worked out for me to be making payments of £122 per month. 

ETA - I work evenings and weekends to keep afloat. I know I'm not earning terrible amounts so I should be able to keep up but I just find it impossible. 

Monthly Income Details[/b]

Monthly income after tax................ 2265

Shift work....... 350

Total monthly income.................... 2615[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 800

Management charge (leasehold property).. 216

Mobile phone............................ 55

Groceries etc. ......................... 150

Petrol/diesel........................... 120

Road tax................................ 15

Car Insurance........................... 177

Car maintenance (including MOT)......... 0

Car parking............................. 15

Pet insurance/vet bills................. 100

Presents (birthday, christmas etc)...... 0

Haircuts................................ 75

Entertainment........................... 130

Commuting costs......................... 82

Horse costs (food/shoes/hay)............ 400[b]

Total monthly expenses.................. 2335[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 2400

Other assets............................ 1500[b]

Total Assets............................ 3900[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Tesco Bank.....................4800......0.........0

Capital One....................2250......0.........0

Natwest........................2250......0.........0

Aqua...........................900.......0.........0

Zopa...........................1200......0.........0

Drafty.........................350.......0.........0 - was due to be finished Oct 

Very...........................129.......0.........0 - was due to be finished April 

Omni...........................120.......0.........0   - was due to be finished Feb

Vanquis........................550.......0.........0[b] 
Parking fines................£300

Total unsecured debts..........12849.....0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,615

Expenses (including HP & secured debts). 2,335

Available for debt repayments........... 280

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 280[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 3,900

Total HP & Secured debt................. -0

Total Unsecured debt.................... -12,549[b]

Net Assets.............................. -8,649[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

fatbelly

Looks like a debt management plan to me.

Are those parking fines private parking fines? There is a whole board devoted to them and they would tell you not to make payment to them