New to iva

witchypoo1973

Hello all, I'm currently in the process of starting my iva, just looking for advice of people who have been in them for while, me and my wife are obviously to all this.

Grumpelstiltskin

OK Who have you taken advice from?  I hope you didn't answer an ad. on  social media.

Is an IVA the best way forward for you? Do you have a mortgage? How much do you owe?

Have you let debts default?

The answer to these questions will help us tell you if you are doing the correct thing.

witchypoo1973

It's with clearpath, I have morgage but negative equity, 132000 owed as iv only had morgage 9 months, my debts haven't defaulted , my total debts are 27000. Thankyou for reply

Brie

Are you in the UK?  A quick google only shows a ClearPath Debt Solutions Ltd in the US.

If you haven't actually agreed to anything yet you may want to reconsider what's happening as if the company is a company (aka plc or ltd) then it needs to make profits and that would be off selling people IVAs.  Maybe I've googled the wrong place but I do suggest you proceed with caution.  

NationalDebtline, StepChange, Community Money Adviser (CMA), Christians Against Poverty (CAP) are all trusted organisations.

Grumpelstiltskin

£27.000 isn't a  huge amount to commit to an IVA. 

Did you consider a DMP?

DMP is an informal debt solution, you are not committed to any amount of repayment and no one is taking their fees out first before any debt repayments are made like they do with an IVA.

You do realize if you can't remortgage after 5 years you will have to  pay an extra year?

witchypoo1973

Thankyou, clearpath are uk based and are registered in the goverment house, they have told me its 4200 pound which is taken from my monthly 355 what I pay. Hope this helps.

Grumpelstiltskin

Did you contact any of the free debt charities for advice before you agreed to an IVA?

Add Read this thread.

IMPORTANT - Where to seek professional impartial advice about your debts. — MoneySavingExpert Forum

witchypoo1973

We didn't actually, it was done in panic as we were getting debt recovery letters for council tax areas. Iv checked with trust pilot and they are 4.8 out of 5 with very many good reviews so we went to them.

Grumpelstiltskin

You did the worse thing you could have done in panicking, there is always a solution to any debt problem and IVAs are mis sold by the thousand.

You can't trust the reviews on Trust Pilot, you should have done some research before you jumped in.

OK Council tax is one debt you should do something about but I guess there could have been other unsecured debts you could have stopped paying and made an arrangement with the council to pay your council tax.

I am afraid you have been taken in by a company who's first priority is to make money out of people who are in debt and who don't  do their own research first.

witchypoo1973

Is was passed to debt collectors who were banging on my door every other day, I haven't signed anything yet but they are sending me the proposal tommorow to sign. My head is in bits now as iv no idea what im going to do, thanks for the reply 

Grumpelstiltskin

OK Don't agree to anything until you are 200% sure you know exactly what you are agreeing to and if it is the best way forward.

Council tax is the one debt you can't ignore, have you been in touch with the council? Have they obtained a Liability Order?

Pay Council Tax arrears - GOV.UK