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    • bectoria2006
    • By bectoria2006 15th May 19, 12:06 PM
    • 5Posts
    • 0Thanks
    IVA advice - not sure if right option for me
    • #1
    • 15th May 19, 12:06 PM
    IVA advice - not sure if right option for me 15th May 19 at 12:06 PM

    I am looking for some impartial advice. I have debts totalling 25k mainly on credit cards which started while trying to grow my business and the interest charges meant I let it get out of control. I was keeping on top of the payments (some have been referred to debt management companies and interest frozen) until the beginning of January when my daughter was diagnosed with cancer and I was unable to work and this will be the case until September when she has finished treatment as we have to go abroad for some of it.

    I spoke to Payplan earlier this week and their recommendations were bankruptcy (which I don't want to do) or an IVA. I initially agreed an IVA but having received the information and paperwork I'm not feeling scared and worried about whether this is the right option for me. I am wondering whether I would be better with a DMP as my payment issues are short term and I feel like a 5 year commitment which is a legal agreement is just too much. The advice and agreement was all done in one call and I wasn't given much chance to think it through and because I was panicking about the debt I thought I should do it. Now I'm not sure.

    The worry about it in top of everything else we are going through is making me ill and I am just looking to see what other people who have more knowledge of these things (and don't have a financial interest in my decision) think?

Page 1
    • MovingForwards
    • By MovingForwards 15th May 19, 3:54 PM
    • 2,364 Posts
    • 2,789 Thanks
    • #2
    • 15th May 19, 3:54 PM
    • #2
    • 15th May 19, 3:54 PM
    There is not enough information.

    What is your monthly income/benefits?
    Do you own or rent a property?
    Do you have any assets eg a car valued at over 1k, jewellery /painting/art worth anything?

    Bankruptcy is technically quick and painless. But you may have to pay each month depending on surplus money.

    IVA drags on a bit and could be a bit painful. Also payments increase/decrease depending on surplus money.

    Debt management plan could last for years, most charities don't like people to do them if they are going to take longer than five years to clear. Also increase/decrease depending on surplus money but are an informal agreement.

    Whilst in the future things will change financially, it's the present they are looking at.

    Perhaps look at completing a statement of affairs, even if it's just for your use.
    • PrettyKittyKat
    • By PrettyKittyKat 16th May 19, 8:23 PM
    • 1,194 Posts
    • 1,017 Thanks
    • #3
    • 16th May 19, 8:23 PM
    • #3
    • 16th May 19, 8:23 PM
    An IVA is only suitable if your circumstances are stable and long term. As you say that your circumstances will change come september I would say that an IVA is not a suitable option for you now and that continuing with your DMP until after this time and your circumstances stabilize would be best. Once your circs are stable you can then make an appropriate decision on how to proceed.
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