IVA advice please!
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Slowlydrowning
Posts: 1 Newbie
in IVA & DRO
So I contacted StepChange for advice regarding my debts before Christmas and they first suggested bankruptcy but I carried on struggling onwards and didn't do anything else about it, but stopped paying into my NHS pension to free up an extra £100 for bills. Last week i did the StepChange debt thingy again, and this time they suggested an IVA (maybe because it took into account that I have more income cos I'm not paying my pension) and I am now awaiting a call on Tuesday from the IVA providers to go through what it's all about.
I have a few things which I need clarifying, which I will ask on Tuesday, but could someone answer me a few questions so I'm forearmed?
-so, what am I likely to pay for my IVA each month? If I'm 'just' covering my outgoings at present (stepchange say I have £75 free each month) how much will I be asked to pay? Will I still have virtually nothing left to do things with my family at the end of each month?
-also, I've read about stepchange budget guidelines and I'd love to see these but can't find them ont tinternet? We're a family of five and feel like I'm living on nothing, for example our food bill is £100 per week but it's getting us the absolute basics so I'd love to see what's suggested in the guidelines.
-an extra question....if you go bankrupt, will they make me sell all our possessions? I'm renting our house and have no assets as such.
Thankyou for any help. I'm really, really grateful.
I have a few things which I need clarifying, which I will ask on Tuesday, but could someone answer me a few questions so I'm forearmed?
-so, what am I likely to pay for my IVA each month? If I'm 'just' covering my outgoings at present (stepchange say I have £75 free each month) how much will I be asked to pay? Will I still have virtually nothing left to do things with my family at the end of each month?
-also, I've read about stepchange budget guidelines and I'd love to see these but can't find them ont tinternet? We're a family of five and feel like I'm living on nothing, for example our food bill is £100 per week but it's getting us the absolute basics so I'd love to see what's suggested in the guidelines.
-an extra question....if you go bankrupt, will they make me sell all our possessions? I'm renting our house and have no assets as such.
Thankyou for any help. I'm really, really grateful.
0
Comments
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I think you should go bankrupt because you're renting and have no assets.
Also, you need to start paying back into your pension!0 -
Hi,
How much debt do you have currently ?
Originally IVA`s were designed to cater for people with massive debts, but who could not go bankrupt, as they had assets, such as a house, to protect, basically the same criteria applys still today, we see far too many people approved IVA`s for tiny amounts of debt, some less than 10 or 20k, other solutions cater for debts of that nature.
You also seem a little mis-guided on bankrupcy law, your possessions are not sold, not unless you have a piccsso or two hanging on your living room wall, or some other asset of value, no one wants your second hand trousers, dishwasher or fridge, I`m not trying to sound flippent, but people have some funny ideas about what is concidered to be an asset, and what is concidered to be esential.
Can you post a statement of affairs so we can give you more specific advice :
https://www.stoozing.com/soa.phpI’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Slowlydrowning wrote: »-so, what am I likely to pay for my IVA each month? If I'm 'just' covering my outgoings at present (stepchange say I have £75 free each month) how much will I be asked to pay? Will I still have virtually nothing left to do things with my family at the end of each month?
-also, I've read about stepchange budget guidelines and I'd love to see these but can't find them ont tinternet? We're a family of five and feel like I'm living on nothing, for example our food bill is £100 per week but it's getting us the absolute basics so I'd love to see what's suggested in the guidelines.
-an extra question....if you go bankrupt, will they make me sell all our possessions?
They work out your living costs (as a household) and whatever is left will be your payment, if its high enough it may be accepted.
When your talking about bankruptcy and IVA then you SHOULDNT have anything left to "enjoy" yourself and your family at the end of the month as that wouldnt be an essential cost.
IVA is a 5 year commitment, but hopefully at the end you should of trained yourself to live within your means and budget properly. Depends on your level of debt to income and if your income will likely increase in this time it may or may not be a good idea to go down the IVA route.
If you have a car thats worth thousands, then you may be made to sell it if you go bankrupt route.
How have you got into this position? Overspending for years or sudden drop in salary or a few big bills increased debt?
Posting up your SOA is a good start.0
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