Is an IVA really the best option?

KatyB_3

Hi All,
I have taken the first few steps to sorting out some very scary debts and have sought advice from two independent places, both suggesting that an IVA is the best option for me. However, reading through various threads, it appears that there may be other options . I am very confused and would really appreciate some suggestions from others.. I don't really want to go down the route of an IVA unless it's really the best choice. SOA below.. Thanks all!

[tt]
Statement of Affairs and Personal Balance Sheet



Monthly Income Details

Monthly income after tax................ 1663

Partners monthly income after tax....... 0

Benefits................................ 224

Other income............................ 0

Total monthly income.................... 1887



Monthly Expense Details

Mortgage................................ 0

Secured loan repayments................. 0

Rent.................................... 332

Management charge (leasehold flat)...... 0

Council tax............................. 86

Electricity............................. 34

Gas..................................... 41

Oil..................................... 0

Water rates............................. 22

Telephone (land line)................... 22

Mobile phone............................ 35

TV Licence.............................. 12

Satellite/Cable TV...................... 21

Internet Services....................... 16

Groceries etc. ......................... 250

Clothing................................ 40

Petrol/diesel........................... 120

Road tax................................ 5

Car Insurance........................... 50

Car maintenance (including MOT)......... 20

Car parking............................. 20

Other travel............................ 0

Childcare/nursery....................... 180

Other child related expenses............ 25

Medical (prescriptions, dentist etc).... 27

Pet insurance/vet bills................. 25

Buildings insurance..................... 0

Contents insurance...................... 20

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 20

Haircuts................................ 20

Entertainment........................... 60

Holiday................................. 0

Emergency fund.......................... 25

Total monthly expenses.................. 1528



Assets

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 3500

Other assets............................ 0

Total Assets............................ 3500



No Secured Debt



Unsecured Debts

Description....................Debt......Monthly...APR

Northern Rock..................1555......31........7

Halifax........................3400......70........26

Royal Bank of Scotlan..........4900......120.......26

Co-Op Bank.....................3000......72........14

Alliance and Leiceste..........4400......110.......26

Student Loan...................5000......120.......6

Natwest OD.....................1500......75........0

Barclays OD....................2500......125.......0

Alliance and Leiceste..........8000......80........6

Capital One....................3850......115.......26

Total unsecured debts..........38105.....918.......-



Monthly Budget Summary

Total monthly income.................... 1,887

Expenses (including secured debts)....... 1,528

Available for debt repayments........... 359

Monthly UNsecured debt repayments....... 918

Surplus(deficit if negative)............ -559



Personal Balance Sheet Summary

Total assets (things you own)........... 3,500

Total Secured debt...................... -0

Total Unsecured debt.................... -38,105

Personal net worth...................... -34,605



Created using the SOA calculator at www.makesenseofcards.com. [/tt]

fermi

Who advised the IVA? Independent doesn't always mean impartial.

It would be a good idea to read Martins guide to IVA's.

Link: Guide to IVAs - Are they worth it?

KatyB_3

Hello - thanks for the quick reply!
I have read the guide and have taken advice from the Citizen's Advice Bereau and also CCCS, both recommended. I am a bit scared of going down this route as it is such a big step. Through other comments on the forums, it appears that others in similar situations have managed without the IVA - I'm just wondering whether anyone had experience or had been in a similar situation and whether it is possible without.

Seaxwyn

Welcome Katy! Just bumping you up so the 'day crew' see your post.

bogged_down_with_£

You have a similar debt to me. interestingly my CAB couldn't offer any advice other than call the national debtline 0808 808 4000. I will be doing that this morning. CCCS were the other point of contact- worried too that IVA may be my only option! There are Debt repayment plans avilable but I think they very much depend on assets available. I have none other than HP car. Ho hum. Hope you get some good advice. They are generally a great bunch on here and have been very helpful to me so far x Good luck x

stapeley

The level of debt is very high to what you earn . As you rent the other option is bankruptcy, it is not as scary as it sounds . Try the bankrupcy forum , good luck .

KatyB_3

Thanks all! Glad I'm not the only one in this boat.

KatyB_3

bogged_down_with_£ wrote: »

You have a similar debt to me. interestingly my CAB couldn't offer any advice other than call the national debtline 0808 808 4000. I will be doing that this morning. CCCS were the other point of contact- worried too that IVA may be my only option! There are Debt repayment plans avilable but I think they very much depend on assets available. I have none other than HP car. Ho hum. Hope you get some good advice. They are generally a great bunch on here and have been very helpful to me so far x Good luck x

Thanks a lot. Would be great to know how you get on

bogged_down_with_£

THe lady was very helpful and non judgemental- I also had a discussion about the amount of people in similar circumstances and debt. Quite staggering as she is in the know. Talked through 4 options available to me- 1) debt consolidation- NO WAY ME THINKS- no more loans!
2) Debt management program- i) I can approach creditors by letter myself to freize interest and pay less on pro rata basis- creditors share amount of money between them or ii) The NDL can get third party to negotiate for me with the creditors for free and they arrange a monthly payment which you pay them and they pay creditors, this is something you can pull out of at any stage not legally binding like IVA.... but DMP may go on forever and ever...
3) IVA- again a maybe, Possibilty of 60% of debt wiped out; five years of hard budgeting and then over...but nasty credit rating similar to Bankrupcy
4) The dreaded 'B'- last option ever!

She will send me information on all of the above and I will be making a long and hard decision- hopefully tomorrow. I'm thinking 3...will keep you posted x