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I have £30,000 debts inherited when I was divorced 6 years ago.
I tried to make the payments for the first 2 1/2 years but was getting deeper into debt. I made an agreement with a debt management company and I have been paying off £200 p.m. for 3 years and I was committed to repay this debt as a matter of honour.
This may not sound like much but I am retired on a disability pension and it is a lot to me.
I cannot see this debt reducing, the debt management company charge 17% for their fee out of my £200 payment.
I have been considering an IVA but I am not sure what this will mean for me. I have a small car which has little value, but I am terrified I will lose the car as I am totally dependant on it for my transport. My disability makes it my only form of independance I have. I also have a laptop computer which helps me keep in touch with family and friends. Would I have to lose these on agreeing an IVA?.

Hi ella and welcome to the forum

I don't think an IVA is the right solution for you given that your income is solely derived from state benefits. Creditors will generally not accept cases on this basis, although they oddly do not seem to have the same difficulty when lending the money in the first place!

From what you are saying, coupled with the fact that your debts do not appear to be reducing, I would have thought that bankruptcy proceedigns are a better option for you. Do you own a property with equity in it?

Your car would probably be safe under these proceedings, and I think that it would be very unlikely that you would be required to make any ongoing payments. Have a good think about things, and take direct advice from an insolvency practitioner if you wish further clarification of your options.

Good luck!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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Hi Ella and welcome
You would not lose your car or possessions in an iva. If you dont mind and can give more info as to what disposable income, what you have left after living expenses, dont include any debts. Then the experts will advise on possible solutions for you.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

Hello Ella

I agree with Melanie that BKR would be the best option for you. An IVA would leave you with a considerable amount of uncertainty for the future whereas BKR would be a clear and immediate solution to the problem.

Your desire to pay off these debts is admirable but if there is not a solution to your problems then You can take the BKR route with your head held high in the knowledge that you've done all you can.

You'll find that the rigours of BKR are far less than you might imagine, and for you, would probably be less than you would endure in an IVA. In addition, if your car is worth less than £2500 and you rely upon it almost certainly you would be allowed to keep it in a BKR.

Hi Ella
The 17% for the debt management company is steep and if your debt is still not reducing, then it seems a good idea to seek another solution. I tend to agree with Melanie that an IVA is probably not the best solution for you, and bankruptcy may be the way to go.

You wouldnt lose your car or possessions under an IVA agreement although as Melanie rightly says your creditors would not be predisposed to such an agreement whilst you are on state benefits.

Have you spoken directly to your creditors outside of the debt management company to get their views on the situation. As you have shown such a willingness to pay off the debt, they may be willing to work with you to help.

I wish you the very best

http://www.iva-solution.org.uk