Another IVA thread - Advice wanted please

BeardedGreyhound2

Good afternoon - First time poster, but certainly wont be the last!

Currently in the awful situation of looking down the IVA pathway, as many others have been.

I've personally accumulated more debt than id imagine possible, and an IVA seems the best route after speaking to 3x companies - Advice Debt, National Debt Relief & Money Advice.

I am in full time employment, so hoping its a straight forward IVA. 

I am a JOINT home owner with my wife, who is not linked to MY debts in any way shape or form. This is my reason for going the IVA route, so the house is kept safe & I can personally manage the payments, not linking or implicating my wife in any way.

My query really is, I've spoken to the IP who is as I type writing up the paperwork for me to confirm and then put forward to the creditors, and she has confirmed that I should probably look to cancel the Direct Debits for the Loans, etc, and leave them to be dealt with in the IVA.

My concern being, obviously there's a chance the creditors do not accept the IVA, which I'm worried will leave me in a worse position if that's the outcome having halted the DD's and will show arrears. 

One of my Loan companies have already had me on a 'payment plan' of £1 a month for 3 months, and an advisor I spoke to at Money advice said that if this is extended, or missed it will put me in default (I think that was the term he used) and they could seek further action - Is this likely?

On the other hand the reason for the IVA is that the monthly outgoings are outweighing the incomes and continuing to pay them for the duration until the IVA (if accepted) is put in place is going to cripple me further, and having already shredded the CC's there's no 'additional' money to get to in an emergency. 

What advice would anyone who has gone through similar recommend?

On a side note - the possibility of this coming to fruition is such a weight off my shoulders (all of the companies suggested they cannot see a reason for refusal) and it literally has been a lightbulb moment, making the future seem so hopeful and bright! 

Grumpelstiltskin

What is the total amount of the debts?

Have you spoken to any of the debt charities not just IVA companies?

ManyWays

Improvements are being brought into IVAs over the next three months that will make them significantly better, especially for people with a house.

I am not saying an IVA is a good option for you, it isn't for most people, but you must NOT proceed at the moment with an IVA unless it is "under the 2025 protocol". This means that your IVA will be 6 years long and there will be NO equity release clause in the IVA. Also under the new 2025 T&CS, there is a bit more flexibility to reduce your payments if you get into difficulty. 

Unless you are certain this is under the 2025 protocol, you have to ask the IP and you want the answer from them about this in writing, not on the phone. 
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To decide if an IVA is right for you, that means looking at your situation and what the options and possible problems may be. IVA firms get large fees from selling you one, so the advice they give cannot be described as "disinterested".

How large are your debts and what is the IVA firm saying that you would pay a month at the start? Do you have any joint debts that are going into the IVA, this includes loans and utility bills? Do you have a car on finance, if you do will you own it at the end or is it on PCP? Is there any chance you may need to move house within the next 6 years? Is your job very secure? 

You have a joint mortgage with your wife, so I hope the IVA firm has explained that the IVA and the defaults you will get will have some effect on your wife's credit rating.