Hi, Im currently in the process of setting up an Iva with payplan, but keep wondering if in doing the right thing.. I owe a total of 11k and I'm only 23 years old, I rent my house with my partner and I have a 3 year old daughter. Am I going to regret taking an Iva!? Or should I just go for it?
My first piece of advice would be to take the opinion of 2 or 3 providers before embarking on your journey to debt freedom. That way you can ensure you've received impartial case specific advice.
An IVA isn't easy but it is do'able. I've been out of mine for about a year and do not regret it for one minute, it's taught me a very valuable lesson in money management.
Have you considered all debt remedies or just the IVA?
I wouldn't proceed without being 100% sure as it's a long journey and not always easy.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Hi Sophie. I would suggest you have a chat with a couple of other firms, as it is too late for doubts once the IVA has started.
Without knowing your full circumstances I can't comment on whether an IVA is right for you --- were other options discussed ? £11k is a modest sum to go into an IVA with.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Do I hate being in an IVA? Yes
Was it the best option available to me? Yes
Therefore do I regret doing it? No
So as other posters have said, no solution is easy but it is worse to do nothing and bury your head in the sand. A good IP will advise you on the best course of action.
Thanks guys, I have spoken to another company but felt like they were too pushy where as payplan have been more at ease with me. My doubts mainly come from what I have read. It scares me that an Iva is just below bankruptcy, and so many posts on here about having to extend? Is this mainly when people own/ have mortgages on property? As I don't have any assests above £1000 so should mine be technically quite plain sailing? As they can't demand any equity etc!? I feel it's going to help me a lot more than if I don't do it and I will have learnt my lesson! What happens in the creditors meeting? On the phone do I have to directly speak to people? What gets said? I'm doing my proposal tomorrow
Thanks for all advice it's nice to know I'm not the only one in this position
You're definitely not the only one in an IVA but I can know how you feel as when I first recognised I was in debt I thought I was the only person, then I found this wonderful supportive forum and found out I wasn't.
The creditors meeting will take place and you will be given a time and date, you will need to be available to be told the result, your IP will do all the hard work behind the scenes. If there is anything to discuss such as any thing the creditors request your IP will discuss it with you at this point.
If you don't have a mortgage/equity then yours may well be one of the 60 month IVA's that is straightforward. My IVA ran for 60 months then concluded.
Another thing you may want to discuss is how any PPI claim will be dealt with but by the time your 60 months are up this should be dealt with long before - it's only now it's holding a few IVA closures up.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Thanks Lesley . Andy I'm proposing £150 a month, and I wouldn't expect my income to have a big increase, I'm planning to have another baby hopefully soon so that would put my career and potentially progression at a bit of a halt! I only work part time at the minute. Do I have to inform IP of everything!? As in if I get a small Payrise ? Can they then increase payments? Also say if like I won £1000 or £5000 on the lotto (not that I regularly play!!) do you have to declare that and are you then expected to pay the win to creditors?
Hi Sophie. I am surprised that Payplan haven't covered your queries!
Yes, you need to keep your IP in the loop about anything that will / might affect your finances.
If you get any payrise this will be taken into account and monthly payments possibly increased accordingly ( usually by 50% of the net increase).
Any lotto wins, other windfalls and inheritances are to be paid into the IVA in their entirety ( there is usually a £500 deminimis --- ie £499 win is all yours, £501 win is all the IVAs).
Also the IVA will want a share of any overtime you earn --- this should all be detailed in your paperwork and should have been explained in detail by this stage.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks foggy, I think I just haven't thought of my questions until this weekend and haven't spoken to my advisor- I'm usually following my 3 year old around the house as well so usually get distracted and forget to ask questions!
Because I don't want to have a bankruptcy to my name... It's a lot worse in my opinion
I don't regret my IVA, because it was the best solution for me. But in your case, I've got to agree with Desperate Bob.
Based on your information, you have few assets to protect, and are not a homeowner. Furthermore, you are expecting another child, which is going to drastically upset your income (and potentially jeapodise the viability of your IVA). Going BR is another option (even a DRO if someone can look at your finances and deem that you only have less than £50pcm in disposable income after bills etc).
Even a Debt Management Plan is viable if you fancy a less drastic, more flexible (but longer term) option.
In addition to speaking to private companies (some of whom are bound to want to flog you an IVA, even if it may not be your best option), have a chat with your local CAB and the various debt charities: Stepchange and National Debt Line etc... as well.
Get opionions for 'all sides' so to speak, and consider your options VERY carefully.
DO NOT 'rush' into anything.
All the best, whatever you decide to do.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
I'm not expecting a baby... I just would like to continue my family soon. I really do not want to be declared bankrupt! Surely that option is a lot worse and does more damage to credit file, there's so many forms I've filled in where it says have you ever been declared bankrupt, I've never seen one that asks if you have had an Iva, once I've paid up etc I want to put it all behind me where as a bankruptcy is going to affect me more in the long term surely
Think carefully Sophie, bankruptcy in my opinion is a sledgehammer to crack a nut in your situation. An IVA can work but it is a formal insolvency that will mean that you have to pay what you can afford over five years
Consider the DMP option in addition to considering the IVA option because you could repay your debts in approx. 6 years through a charity [if creditors agree no interest] or 7.5 years through a protocol compliant DMP again if creditors freeze interest.
If you are able to increase payments over the years the term will reduce
A DMP will have the least affect on your credit rating going forwards, although it will still mean that you will find it near impossible to obtain credit until your debts are paid
. Andy I'm proposing £150 a month, and I wouldn't expect my income to have a big increase, I'm planning to have another baby hopefully soon so that would put my career and potentially progression at a bit of a halt! I only work part time at the minute. Do I have to inform IP of everything!? As in if I get a small Payrise ? Can they then increase payments? Also say if like I won £1000 or £5000 on the lotto (not that I regularly play!!) do you have to declare that and are you then expected to pay the win to creditors?
