Iva

needhelp1980

hello I have huge debts and considering an Iva, my mortgage is with the same provider as one of my cards that will be on the Iva, will this make any difference? Any impact on mortgage of the credit card is with the same bank. It’s virgin money

Grumpelstiltskin

OK Have you given us a SOA with full details of your income and expenditure yet?

This would give us some idea whether an IVA is the best way forward.

I hope you haven't been reading IVA ads. on social media.

fatbelly

How huge is huge?

No, the card debt in an IVA would have no particular effect. It is the insolvency itself that will limit your options for 6 years

needhelp1980

https://forums.moneysavingexpert.com/discussion/comment/82014170#Comment_82014170

about 70k, credit cards, loans and payday loans

RAS

IVAs are massively mis-sold.

If your circumstances improve your won't be getting an 87% discount, you could be paying back the full amount and and 4-9k in fees.

If you do explore one, make sure you talk to Stepchange rather than respond to the adverts. That phone just goes a lead generator who's got a script and a sales target which you can help them compete. And Stepchange charge about half the fee, no investors to pay back.

Until we see your SOA is difficult to advise whether there are other options that would work better.

fatbelly

II spotted your other thread. An IVA does seem like a sensible strategy for you but read up on them and if you are uncomfortable with how your IP is presenting them to you, ditch them and try another.

ManyWays

I agree that an IVA is potentially a suitable option for you based on your other thread.

But you should rule it out if it is likely you may have to move or if there is a chance you will loose your job. IVAs are not flexible, in this situation it is better to opt for a DMP even if it looks longer.

And, very important, you need to discuss with the IVA firm what will happens when your current mortgage fix at a low rate ends. It is likely that it will be going up a lot. You need an assurance that if this happens, your IVA payments will be reduced by that amount and the IVA will be closed "on the basis of funds paid to date" if the increase is too large for you to make any IVA payment. You want this to be written into your IVA proposal sent to creditors. Do not accept the IVA firm saying that can all be sorted out at the time, you want clear parameters set for you and for your lenders to approve, not to end up with an IVA that fails at the point when interest rate raises have already made your situation worse.