IVA advice cons

bbJp_2

hi
I am currently deciding whether or not to go ahead with an IVA. There are a couple of things that I want to check.

I have about 27k of debt with credit cards, graduate loans, over drafts etc.
4500k grad loan barclays
1500 hsbc overdraft
4000 citi credit card
2000 mint credit card 0% interest (just did a balance transfer for this)
3500 MBNA credit card
800 River Island Store cards
400 House of fraser store card
1000 overdraft barclays
2000 student loans
6000 Tax man

i have 4k on citi cards and two store cards with 1500k on them i was going to transfer them to a 0% interest barclaycard, but is this inadvisable if I am about to apply for an IVA, should I just keep the debt where it is. I dont own a house i only rent, i dont have any savings, shares etc. or any inheritance.

Also if i do go ahead with an IVA except having to build up my credit rating... are there things that you cannot do? and does my sound a good case for one.
Also if you have applied and get declined for your IVA, does that mean that you are in bad position.
I really appreciate someone time in looking at this. I just need a little guidance in making the right decision

angeldiva

Im really not sure about the ins and outs of an IVA so sorry I cant be more help. I do know that someone else will be along soon with the right advice. Have you considered a DMP with Payplan or a similar company?

doelani

Can I ask have you contacted CCCS or Payplan to discuss your debt and get advice ? Usually people opt for an IVA to protect asset like their home or if their job would be effected.

Also if you are considering trying to sort you debt getting new credit cards and moving the bet would not be a good idea. It will not go down well with creditors if they are approached to stop interest etc if you have got more credit when you know you are in trouble.

Please contact one of the debt charities and ask their advice. Look at all options before making any decission.

bbJp_2

no I havent contacted cccs or payplan but i am intending too tomorrow morning, i just wandered if moving some of the debt to 0% interest in the meantime would be a good idea but guessing its not!
thanks for advice on IVA maybe not being the right thing for someone without a house.
I just cant wait to start moving forward with something as at the moment feel like i am sinking...

doelani

bbJp wrote: »

no I havent contacted cccs or payplan but i am intending too tomorrow morning, i just wandered if moving some of the debt to 0% interest in the meantime would be a good idea but guessing its not!
thanks for advice on IVA maybe not being the right thing for someone without a house.
I just cant wait to start moving forward with something as at the moment feel like i am sinking...

When you ring CCCS or payplan make sure you have a list of all your debts and ourgoings. If I remember rightly form when I rang them they will give you a reference and arrange an appointment for someone to call back for a more detailed chat.

We went into |IVA for 3 reasons, our house, our car ( on hp and had to keep paying ) and finally because at the time I worked for a bank so cold not go bankrupt and did not fancy a DMP lasting approx 17 years.

Hope you get on ok , have a look at their websites and fill in the Debt Remedy section on CCCS and see what it suggests. I doubt they will suggest a IVA though.

mrskingandthescarecrow

Hi, if you have no assetts (house, car etc) bankruptcy may be a better option.

If you do decide to go ahead with the iva make sure you read the small print as they are not an easy way out. Make sure you know what fees the IR will deduct from your payments and that you are happy with this. Make sure it's stated clearly in writing about what happens if the IVA fails (i.e. you stop paying and in 5 years a lot can happen - babies, relationship breakdown, accident). You may find (as I have in my IVA) that if it fails the IVA pockets all your money and you are left where you started off with the same amount of debts you have now.

Just make sure that you have checked out all the options (and get everythingin writing!). I'm a year into my IVA and wish I'd just offered my creditors all a monthly payment until I was back on my feet.

I would have also preferred to go bankrupt but my husband didn't want to do this because of the stigma.

rog2

Sound advice from mrskingandthescarecrow, as well as doelani. An IVA can be an alternative to bankruptcy, but it must be remembered that an IVA is, also, a form of Insolvency and will be included on the Insolvency register.
I can only emphasise the warnings to be very careful about the 'small print' and only consider an Insolveny Practitioner who is reccomended by one of the Debt Counselling Charities.
Above all - stay well away from those companies who advertise that they can 'Get rid of up to 90% of your debt through a little known Government Legislation'. These are ambulance chasers whose sole interest is to make profit out of the fees that they are allowed to charge, and take, before any money goes to your creditors.
You should, in my opinion, talk to CCCS, National Debtline or CAB (I will also include Payplan, although they are not strictly a charity but they do not charge for advice and have a very good reputation on this board) about your whole situation, rather than focus directly on an IVA. You may find the alternatives offer a better solution for you, so just go in with an open mind.

Good luck.