now im confused

[xj4000]

I entered into an iva last july 2007, my wife and i divorced i had debts which were 60000 pounds.
i had some savings, my only asset, of 21000 pounds.

i live in rented accomadation.

i pay into my iva at 354 pounds per month i have been told that i should never have entered into an iva until my assets were used up as the iva company took the 21000 pound and said an iva was right for me now im confused, have a been mis sold an iva

[rayb]

Hi and welcome to the forum. Could you post a bit more information as I am a bit confused about the fact that they just took 21K off you. Could you not have offered that amount as possible full and final settlement??

[Adam Davies]

Hi
Surely this 21k went into your IVA with your monthly payments on top.
Please confirm

[xj4000]

My wife and i divorced in january 2007, We parted and i was given a £35000 settlement as part of the divorce. I had personnal unsecure loans/credit card debts amounting to £60,000. I approached a debt management company for advice, my frame of mind at the time was not good ie depression. the company offered me an iva based on £21000 lump sum from me and £354 per month from my salary for a 3 year iva. my salary is approx £1800 net after tax.

My question was, would i have been better off paying my creditors there monthly payments until the money ran out. and then taking the advice of this company. I could probably continued to pay my way for another 18months or so.

[xj4000]

By the way i do not have any assets, i live in private rented accomodation. many thanks

[MelanieGiles]

You would have incurred ongoing interest charges as well which would need to have been taken into consideration.

[xj4000]

although I would have incurred additional interest charges, i would have still been in a solvent position until my money ran out,would i have been any less better off, ? I beleive i should have left my debts until that was a real worry?

My wife and i divorced in january 2007, We parted and i was given a £35000 settlement as part of the divorce. I had personnal unsecure loans/credit card debts amounting to £60,000. I approached a debt management company for advice, my frame of mind at the time was not good ie depression. the company offered me an iva based on £21000 lump sum from me and £354 per month from my salary for a 3 year iva. my salary is approx £1800 net after tax.

My question was, would i have been better off paying my creditors there monthly payments until the money ran out. and then taking the advice of this company. I could probably continued to pay my way for another 18months or so.

[xj4000]

Indeed could i have offered £21000 as full and final settlement?

My wife and i divorced in january 2007, We parted and i was given a £35000 settlement as part of the divorce. I had personnal unsecure loans/credit card debts amounting to £60,000. I approached a debt management company for advice, my frame of mind at the time was not good ie depression. the company offered me an iva based on £21000 lump sum from me and £354 per month from my salary for a 3 year iva. my salary is approx £1800 net after tax.

My question was, would i have been better off paying my creditors there monthly payments until the money ran out. and then taking the advice of this company. I could probably continued to pay my way for another 18months or so.

[MelanieGiles]

Not if you also had disposable income available.

[xj4000]

I think your point, although noted, is irrelavent, i would have generateted extra interest, but i could have paid my way for a further 18 months.
Then i could have looked at alternative debt solutions.

Not if you also had disposable income available.