Please help! Advice needed re: IVA

Sarahs2020

I really need some quick advice.

I think I’ve got swept away with the idea of an IVA with PayPlan as that’s what they recommended. A meeting took place yesterday with PayPlan and my creditors to vote, and they said it can all go ahead. Have I reached the point on no return? I don’t think it was the right thing for me to do and I feel sick with worry.

Very quickly, my debts are around £12K.
I am self employed and not a home owner. The debts included at HMRC debt which is why the IVA was recommended.

Is it too late to back out?

ManyWays

I think it may be too late. You need to phone Payplan urgently about this if you want to, no time to spend thinking about it.
12k is a low amount of debt for an IVA, but HMRC can be difficult and no one here is going to give "quick advice" on the best options for someone self emplyed.

Sarahs2020

thank you, I will speak to them.

fatbelly

On the face of it an IVA is overkill for someone without property and only 12k debts.

However, HMRC is a priority creditor and an IVA is one way of forcing their hand, potentially. And it sounds as if it has been successful.

The devil will be in the detail here. How much will you repay over I assume 60 months? How would this compare to a payment plan with HMRC? How would this compare to bankruptcy where there is a £680 upfront fee and a likely contribution from income for 36 months?

IVA may be the least-bad option