To IVA or not Iva

wanttogetmylifetogether

Hi everyone,

I’m looking for some guidance on my debt options because I’m getting conflicting advice and I’m feeling overwhelmed.

My situation:

• I’m a shared ownership homeowner with a mortgage and rent (50%)
• No dependants
• Single household
• Full‑time employment
• Recently assessed by PayPlan
• They said I have £56.32 surplus per month
• Total non‑priority debt: £41,448
• Priority arrears: £7,000 (mortgage + rent arrears)
• Some CCJs already in place- council tax
• I’ve been dealing with bereavement, mental health issues, ADHD burnout, and an autism diagnosis, which have all contributed to the debt situation

PayPlan told me I have two options:

1. IVA
2. £1 token payments and later settlement offers

Income & Expenditure (summary)

Monthly Income:

• Earnings: £2,483
• Total income: £2,483

Monthly Outgoings:

• Rent: £550 (including £25 towards arrears)
• Mortgage: £650.00 (payment plan to be arranged once I have decided what I am doing)
• Council Tax: £142.56
• Utilities (dual fuel): £150
• Water: £40
• TV Licence: £15
• Transport (fuel, HP, insurance, MOT, tax): £398 (need this for work)
• Food/Housekeeping: £300
• Communications (mobile + internet): £54
• Personal costs (clothing/haircuts): £36.67
• Health: £4.57
• Insurance: £15

Total outgoings: £2,426.68Surplus: £56.32

Debts

Priority Debts:

• Rent arrears: £2,500
• Mortgage arrears: £4,500Total priority: £7,000

Non‑Priority Debts (total £41,448 all defaulted):

Cabot (multiple accounts)

• Lowell (multiple accounts)
• PRA Group
• Intrum
• Perch Capital (multiple accounts)
• NewDay (Fluid)
• Fashion World
• EON Next (my current provider)
• Tandem Bank
• Zable
• Zilch
• 3 CCJs

My concerns

• I’m 36 and if I’m going to have a baby, it will likely be within the next few years.
• I’m worried an IVA will lock me into my current property for 6 years, plus the time needed to rebuild credit afterwards.
• I’m trying to balance long‑term stability with the practical reality of wanting to move home and start a family.

So yes, just looking for some opinions from people that know what they are talking about, i feel i am at a real crossroads and feel like and IVA feels scary but if its my only option, its my only option. I work for a local authority so no option for overtime.

sourcrates

Your credit file is going to be shredded anyway regardless of what you choose to do, so pay no attention to that.

Will your creditors agree an IVA for £56 a month?

I honestly don`t think that would be viable, see what others have to say.

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82145335#Comment_82145335

Well it would need to be £100 apparently, which she said we can cut from food / phone bill payment will be much lower from next month as device will be paid off.

i think it was more about, do i? or do i so self managed DMP and just try and sell on vinted/marketplace and juts try and make lump sum payments/offers to settle? Just not sure where to turn, after losing both parents and no wehere to turn to for advcie

ArtyJ931

£300 a month for all your food and household costs is barely doable let alone cutting further. What about gifts, emergencies, one off costs? This doesn’t look comprehensive

Also the HP car is a huge expense. Any chance of getting rid and getting a cheap runaround?

ManyWays

An IVA paying £100 a month sounds very unsafe, there is very little room to reduce it eg if energy, fool or petrol goes up.

Your mortgage, what is your current mortgage rate and when does your current mortgage fix end?

you own a car or is it on finance?

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82145402#Comment_82145402

If i did get rid of the car… what would you suggestdoing?

wanttogetmylifetogether

motgage rate ends in 2 years - 4.4%

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/82145433#Comment_82145433

I do not know. Just flagging that it’s a lot of money which I’m sure you know. You don’t have capacity here to save for an owned outright car though! Or will you own this car at the end of your agreement?

RAS

Difficult place to be but frankly, you can't be offering anything but token payments at the moment. Your credit record will repair after 6 years regardless. You need to sort out the priority debts urgently.

What exactly is the housing situation? One bed, studio, 2 bed? Leased flat or house?

My additional concern is that you could be liable for repair or maintenance costs without control over timing or price and have no emergency fund to cover?

With no work overtime, you are going to need a second job, maybe plus a side hustle? You need to clear those mortgage and rent arrears before you need a new fix in 2 years.

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82145570#Comment_82145570

I will own it outright, the finance is not in my name, so i have to pay it or i can get a company car, which is a salary sacrifice, so i think my tax code will go down to 471L i think. but obviously all i will have to do is put petrol in, everything else is covered by them…

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82145657#Comment_82145657

Yes, thats my plan chuck everything i can, i have been looking into a remote customer service job to run along side my current role (which i WFH 3 days a week) but obviously that will eat 40% tax + extra student loan, so just weighing up the figures.

i am in a 2 bed flat 50% ownership 50% housing association, i have asked them if i can get a lodger and they said no, i am in negative equity as i bought in 2021 covid and then obv the leasehold reform, has caused major problems for flats and their re-sale value.

this is why on one hand the IVA seems like a good idea, however i realise the downsides are also mighty.