www.iva.co.uk

Hi everone, I'm new to this group, so go easy!

My circumstances are that hubby and i have together over £55k of unsecured debt. Our income is made up currently of hubby salary, £1200pm, £120 child benefit, £300 WFTC, plus some student grant money (which amounts to £1100pm). I have just over 1 year left of a BsC Hons, which I would quite like to complete as it will enhance my employment prospects post graduation. (I also currently get incapacity benefit at the moment as had problem with my heart over the past year, and no doubts stress from debt making it worse.)

Problem is, trying to make min payments to keep everything ticking over is getting harder and harder. So this had led me to consider we need professional help.

I've spoken to a few companies now, and keep getting differing advice. My burning question at the moment is, as a student with 1 year to go, would an IVA be likley accepted at this stage?
If not, some have suggested D.M. but I think I would rather try to cope for another year an secure employment first and try again for IVA.

Dont think my nerves could cope with the hassles when on a D.M.
Is an IVA for us at the moment despite our income coming from different pots including student grant?

Help!
flowerpot.x

Where does the student money come from? Is it a bursary? Do you have a property and if so what is the equity?

Hi flowerpot and a warm welcome to the forum

I cannot see why it would not, but you will have to demonstrate certainty of an income stream once you have finished your course. Given that you feel that you ought to wait until you gain proper employment, I feel that you have actually answered your own question, and there should be no hassle for you in a holding DMP if you appoint a company to represent you to your creditors.

By looking at the possibility of an IVA it can be assumed that you realise you are in trouble. If an IVA is not viable then I would urge you not to be too harsh on DMP. Whilst it may not be ideal, at the very least it will stop you borrowing any more and if you are in the robbing Peter to pay Paul syndrome then prevaricating at this stage is likely to mean that you will have larger debts in 12 months time.
I also have to say that to be fair to creditors, they are generally sympathetic to those that find themselves in trouble so whilst you would undoubtedly go through what you have described as hassle then as long as you stick to your half of the bargain and as long as it is done properly then a DMP may well be a very useful tool for you.

Hi Melanie and Size 5,

Thank you for your replies. I would still rather try to get into an IVA, but my situation seems complicated by the fact that advice I have recieved over the past two days seems to differ vastly, and I wasnt prepared for this.

To clarify, the student finance comes from the student finance company. (its welsh assembly funding) I have spoken to them today and they would be willing to stand on the outside of an IVA arrangment, but would provide grant/bursary funding only in my final year as opposed to a loan of £4500 as well. (They reminded me that repayments of this nature of loan are very low anyway, that they do not accept/agree to IVA, i.e income threshold £16k, repay £7 pcm)

I have worked out that should we go ahead with an IVA, I wil need to secure a job earning at least £15k, which I previously earned in (2002), so hopefully when I graduate, my employment prospects should be good. I have lots of experience in my former occupation, which although is different to the career path I'm studying for, the skills are easily transferable.

The reason I'm not at all keen on a D.M. is that I cannot cope with the letters, phone calls and their content (or worse - bayliffs etc).

But I am going to consider both and talk it over with my other half this weekend, so no doubt will be posting again.

Thank-you for your support
flowerpot

I understand what you say but to run the risk of getting into more debt simply to avoid letters and calls is just plain mad. Be aware that an IVA, even if it is possible, will not stop that sort of hassle in the initial short term anyway.