IVA best choice?

freedom90

Grumpelstiltskin said:

OK As long as you are happy with being conned by these people and you do realize you will pay them thousands in fees and pay them for 6 years not 5 then no problem.

not happy being poorly advised no! Why 6 yrs? What course of action would be best from here? I’ve paid the first payment already.
didn’t think I could claim bankruptcy due to money left over after budgeting was calculated!

Grumpelstiltskin

Why 6 years?

If you have entered an IVA when you have a mortgage you have to remortgage after 5 years.

If you have entered an IVA and you don't have a mortgage you have to pay an extra year.

Was this not explained to you by the IVA company?

As I have said did you contact one of the charities eg. Stepchange,  or National Debt Line they would have explained all your choices.

sourcrates

An IVA is bankruptcy for homeowners, as your asset, your home, is legally protected from your creditors, if you don`t own a house, you should not really have opted for an IVA.

With no assets to protect and that much debt, you should just save the £680 fee and declare bankruptcy.

Fatbelly did explain this (twice) in previous posts, you would be dis-charged after a year, and if you have disposable income, you may possibly have to pay an IPA for 3 years, but then it would be over, and after 6 years your credit file would recover.

Having disposable income is no barrier to bankruptcy, you pay your fee and its a done deal more or less.

With an IVA you will be paying for 6 years, as you have to re-mortgage in year 5, you can`t do that, as you don`t own a house, so you will have to pay for a further year, plus any more money you receive will go to your creditors, you may end up paying back the full debt plus all the fee`s etc.

You received some bad advice on your options here.

Grumpelstiltskin

We did try to tell OP right from the start that an IVA was not the way to go, we can't help it if they decided not to take any notice of what we said.

freedom90

Thank you for all your input and time. Being 52 not really up with all this forum and tech stuff.
it appears that I have had bad advice from what I believed to be a good organisation Money Adivce which you have included a link to, it appears not. I did say that I had started an IVA application and it went through yesterday. 

Basically do I let it fail by not paying, then what happens? Do I get a cooling off period so to speak? Can I still apply for bankruptcy? 

Grumpelstiltskin

Look don't blame your age, I'm 80.

Hopefully there hasn't been a creditors meeting yet, ( they have to agree to the IVA) so contact the company on Monday and tell them you are not progressing with the IVA..

Don't rush into anything until you are 100% sure you have taken independent advice and made the right decision.

freedom90

Grumpelstiltskin said:

Look don't blame your age, I'm 80.

Hopefully there hasn't been a creditors meeting yet, ( they have to agree to the IVA) so contact the company on Monday and tell them you are not progressing with the IVA..

Don't rush into anything until you are 100% sure you have taken independent advice and made the right decision.

unfortunately the creditors meeting was yesterday and in previous post explained it went through yesterday. 

freedom90

Also contacted citizens advice who replied that because I had already spoke to money advice that they cannot help me. 

Grumpelstiltskin

You came on here asking for advice, both fatbelly and I gave you the same advice and you chose to ignore it.
Can you see why we think what is the point of giving you more advice if you are going to ignore it again?
I know we are here to help but we can't force you to accept our advice which you didn't.

ManyWays

You may have had very poor advice but if the IVA has been voted on by the creditors, then that is it. 

If you find it a struggle making payments, or they want you to sign up for a very high cost secured loan in year 5, do come back here and ask about your options going forward.