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Advice to take out IVA or set up agreements with creditors ourselves
flower_girl_3
Posts: 11 Forumite
My husband and I have a total of 65000 unsecured debt ( credit loans with accrued interest and personal loans) we have a mortgage and second mortgage total of £92000.
we are keeping up with all priority bills and insurance for house. But we are no longer able to keep paying all our credit cards . We have ben paying minimum amount but not making much headway .
we are keeping up with all priority bills and insurance for house. But we are no longer able to keep paying all our credit cards . We have ben paying minimum amount but not making much headway .
We have had lengthy phone call with payplan to go through our finances which was a helpful process however they recommended an IVA. My husband and I are really concerned about this and would like to try to negotiate with our creditors independently.
What are views of others?
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Comments
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Well an IVA is for people with large debts, significant surplus income and an asset to protect.
That does sound like you.
You would need two interlocking IVAs.
Give us a statement of affairs if you want advice
https://www.lemonfool.co.uk/financecalculators/soa.php
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We really need to see your income/expenditure, because specific advice is dependant on those factors.
Speaking generally, you are a possible candidate for an IVA, but it depends what you will have available for debt repayments, as its a formal insolvency solution, you would have to maintain an agreed monthly amount for up to 60 months, so it has to be sustainable.
An informal arrangement is not subject to any such restrictions, if you manage it yourself, which is not difficult to do.
There is no negotiation with creditors at all, you work out a budget you can live on, and what`s left is your disposable income for your debt repayments, you simply split it between them, either by % of debt or pro-rata.
Its all about affordability, so they get what your budget says you can afford, and that`s it, its the basic system the FCA insists the debt industry work with.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
A statement of affairs will help us see what is happening. Is the secured loan expensive? When does it end?0
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Have a look at the rules on protocol IVAs and note that yours may be set at 72 monyhs
https://www.gov.uk/government/publications/individual-voluntary-arrangement-iva-protocol/iva-protocol-20250
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