IVA advice

Sox84

Hi there

I hope I’m posting in the right place. 

I’d like to make 2025 the year where I really start to get on top of my debts. 

I’m considering an IVA. I currently work part time (22.5 hours a week). This is my main source of income. 

I also own a franchise. Would an IVA be suitable for me given I own a franchise? 

The bulk of my debt is not connected to my business. 

Thank you. 

Grumpelstiltskin

Quick answer don't touch it with a barge pole unless you a) have a large amount of debt  £40.000 plus and b) have a mortgage.

Please give us  more details and we can advise you  better.

RAS

IVAs are sold by companies who get fees for referring punters to insolvency practitioners who charge £4-9k to manage your case. You don't get 79%, 81%, 87% or 91% off your debt. 

You get a tight budget, pay your fees and anything left over goes to your consumer creditors. If your finances improve you could pay back 100%+£9k. And if you don't own a house you pay 6 years. So they are suitable for a few people and risky.

And if you own a franchise, that might be an asset you have to sell. I'd suggest you start by speaking business debtline about the implications of your situation and report back.

fatbelly

Not enough detail to say.

An IVA is bankruptcy for someone with an asset to protect, and they are massively over-sold because of the fees they attract

For most people a debt management plan is more flexible and keeps options open

Grumpelstiltskin

OK I've got a bit more time now.

Read through this thread  https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps-to-take-are-here-please-read-then-ask-questions#latest

Complete a SOA and post it on here.

Are your business and personal finances separate?

Business Debt Line is closed till after the new year but speak to them when they reopen.

The franchise should have a monetary value, you bought it so presumably you could sell it.
That would be a stumbling block with any possible IVA.

There will be a way forward but we do need a lot more details from you.

By the way if you saw an IVA advertised on social media that is a big red flag.

Sox84

Thank you for all the comments. I need to consider all my options but this has really helped, thank you all. X