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IVA advise

94 replies

Cantthinkofonenow · 30/01/2025 17:42

Hi all, I wasn’t sure where to post this.
I rang step change today, I have 6k debt and don’t have a lot of money so I’ve been struggling for a long time so finally gave them a call. They advised me to get an IVA, there were other options but they weren’t appropriate. Has anyone got any experience with an IVA? I was on the phone to them for a good 2 hours going through everything and they gave me lots of information but I’ve read other threads on here about people being against them.
I’ll have to pay £100 a month for 6 years, this is a much more manageable option for me and my credit score is ridiculously low at the minute anyway so I’m not worried about that. What have your experiences been like?

OP posts:
Lurker100 · 30/01/2025 19:46

Yeah you don’t pay back everything with an IVA. That’s the point. I would avoid and seek advice elsewhere. A debt management plan may work for you but you MUST ensure you are working with someone reputable and a) they have arranged for your interest to be frozen on all accounts and b) the money is going to clearing your debts and not their fees.

How is your credit? Could you consolidate some on this onto a 0%? Reducing your monthly interest?

Cantthinkofonenow · 30/01/2025 19:47

SoScarletItWas · 30/01/2025 19:42

That seems to be an American credit checking firm called TransUnion.

Not sure this is all making sense any more.

I’m so so confused so the number that called me was step change and then another number called back, he’s talking to me on WhatsApp and it comes up as National help debt line? I got passed on to someone so I’m assuming step change transferred my call to them?

OP posts:
Lurker100 · 30/01/2025 19:48

Google licensed insolvency practitioner. Go for a face to face meeting. Do not get scammed over the phone

Interested in this thread?

Then you might like threads about this subject:

Cantthinkofonenow · 30/01/2025 19:57

Cantthinkofonenow · 30/01/2025 19:40

Okay, he kept using the word IVA and said that that my total debts are £6,824 I have to pay everything on my credit file

I’m an idiot!! It’s £100 a month for 5 years not 6

OP posts:
SoScarletItWas · 30/01/2025 19:59

OP have you signed anything with a company to say you will pay this £100 a month?

CleanShirt · 30/01/2025 20:00

Cantthinkofonenow · 30/01/2025 19:47

I’m so so confused so the number that called me was step change and then another number called back, he’s talking to me on WhatsApp and it comes up as National help debt line? I got passed on to someone so I’m assuming step change transferred my call to them?

This sounds like you're being scammed. Stop engaging with them straight away.

If you look at a debt management plan I can personally recommend PayPlan. £6k doesn't seem IVA worthy.

Cantthinkofonenow · 30/01/2025 20:01

GrinchoftheNorth · 30/01/2025 19:32

This is accurate. If you have been advised this is the correct solution for you, I'm assuming you have an asset such as a vehicle over 3k, a property or a car on finance. Or a job that disallows bankruptcy. If so, it is likely your best bet and fastest way to become debt free.

if you didn't have any assets you would have been advised to go down the bankruptcy route

I don’t own my house or a car but this was still advised to me?

OP posts:
bagheera92 · 30/01/2025 20:01

I have a Iva. Every year I have a review and have to send my last 3 months back statements.
When my car broke I had to ask for permission to get a new car. It had to be equal to or less then my old one.
I can't sell my home. Any profit off it would go to the IVA. Any large sums of money is taken.
It is done in 5 years, but they may tell me I need to pay an extra year .
At 6 years it is removed from my credit file

Lurker100 · 30/01/2025 20:06

Cantthinkofonenow · 30/01/2025 20:01

I don’t own my house or a car but this was still advised to me?

You have been advised badly

Cantthinkofonenow · 30/01/2025 20:06

No, I agree. I think step change passed me on to someone else and this is national debt helpline they messaged me and advised I could also call them on 01617350124

OP posts:
Cantthinkofonenow · 30/01/2025 20:08

Lurker100 · 30/01/2025 20:06

You have been advised badly

The other options were getting out a big loan or bankruptcy or another method can’t exactly remember what it was but it was similar to an IVA but wasn’t as secure.

OP posts:
Winederlust · 30/01/2025 20:08

I work in insolvency and there is so much poor information on this thread, it's no wonder people end up in the wrong solutions.

@GrinchoftheNorth has it right.

An IVA is a legally binding contract between you and your creditors where you agree to pay a fixed monthly amount typically over 5 or 6 years and whatever is left over after the IVA is completed is written off.

There are fees for the IP to help you set up and administer the IVA, nowadays it's usually a fixed fee of anywhere between £3.5k and £4.5k. It comes out of your monthly contributions and you do not have to pay anything up front.

If your IVA fails early though, you will find that more of your payments will likely have paid towards the fees than your debts so you need to be as confident as you can be that you'll be able to maintain the payments for the full term.

You are expected to provide information for an annual income and expenditure review to ensure your payments remain at the right level, you have to inform your supervisor of any changes to your income such as a pay rise, redundancy or a windfall, and you can't take out credit of more than £500 without the approval of your supervisor, but otherwise on a daily basis your money is yours to do what you want with. It's not constantly monitored.

£6,000 is a pretty low amount of debt for an IVA and I wonder why the alternatives were not deemed suitable? So you own a house or expensive car? If not a DRO might be more suitable; it's free and you'd be debt free after year.

Alternatively in a DMP (be careful as there are free ones but also companies who charge extortionate fees) you'd be debt free in 5 years with a £100pm payment.

There's such a lot of information to take in when considering an IVA and i get it's probably totally overwhelming. Just don't be afraid to approach Stepchange to ask questions or to clarify anything you don't understand, or alternatively seek free independent debt advice. Have a look on the moneyhelper website (run by Money and Pensions Service which is govt funded).

CleanShirt · 30/01/2025 20:09

@Cantthinkofonenow

This is a scam!

https://www.stepchange.org/make-sure-its-us.aspx

No reputable firm would arrange such a serious financial issue over WhatsApp.

Clone Firms Scamming People In Debt. StepChange.

https://www.stepchange.org/make-sure-its-us.aspx

Cantthinkofonenow · 30/01/2025 20:12

SoScarletItWas · 30/01/2025 19:59

OP have you signed anything with a company to say you will pay this £100 a month?

Noo but they are ringing me in the morning to make it official

OP posts:
Winederlust · 30/01/2025 20:16

Just read you don't own your own house or a car. Looks like you're eligible for a DRO.

On whether you've been scammed, it certainly looks like it unfortunately. Stepchange set up and administer IVAs themselves and wouldn't pass you onto anyone else.

Please speak to Citizens Advice, Money Advice Trust or similar, they can give you free advice on your options and signpost you to reputable providers of whichever solution is right for you.

PinkSparklyPussyCat · 30/01/2025 20:17

It's a long time since I was in an IVA but none of this sounds right. Take a look at Payplan's website, there's a lot of useful info on there.

https://www.payplan.com/debt-solutions/

Debt Solutions

Whether it is a debt management plan, an IVA, DRO, or other financial solution. We have a wealth of free information. Find out more & get help here.

https://www.payplan.com/debt-solutions

Winederlust · 30/01/2025 20:18

Cantthinkofonenow · 30/01/2025 20:12

Noo but they are ringing me in the morning to make it official

An IVA isn't 'official' until your proposal has been put to your creditors and they have agreed to it. You shouldn't be asked to make any payments until then.

Crinkle77 · 30/01/2025 20:20

Just block them OP

Cantthinkofonenow · 30/01/2025 20:23

Winederlust · 30/01/2025 20:08

I work in insolvency and there is so much poor information on this thread, it's no wonder people end up in the wrong solutions.

@GrinchoftheNorth has it right.

An IVA is a legally binding contract between you and your creditors where you agree to pay a fixed monthly amount typically over 5 or 6 years and whatever is left over after the IVA is completed is written off.

There are fees for the IP to help you set up and administer the IVA, nowadays it's usually a fixed fee of anywhere between £3.5k and £4.5k. It comes out of your monthly contributions and you do not have to pay anything up front.

If your IVA fails early though, you will find that more of your payments will likely have paid towards the fees than your debts so you need to be as confident as you can be that you'll be able to maintain the payments for the full term.

You are expected to provide information for an annual income and expenditure review to ensure your payments remain at the right level, you have to inform your supervisor of any changes to your income such as a pay rise, redundancy or a windfall, and you can't take out credit of more than £500 without the approval of your supervisor, but otherwise on a daily basis your money is yours to do what you want with. It's not constantly monitored.

£6,000 is a pretty low amount of debt for an IVA and I wonder why the alternatives were not deemed suitable? So you own a house or expensive car? If not a DRO might be more suitable; it's free and you'd be debt free after year.

Alternatively in a DMP (be careful as there are free ones but also companies who charge extortionate fees) you'd be debt free in 5 years with a £100pm payment.

There's such a lot of information to take in when considering an IVA and i get it's probably totally overwhelming. Just don't be afraid to approach Stepchange to ask questions or to clarify anything you don't understand, or alternatively seek free independent debt advice. Have a look on the moneyhelper website (run by Money and Pensions Service which is govt funded).

This has really helped!
He went through all the options and explained why some weren’t suitable. I haven’t signed up to anything yet but this will be expected of me tomorrow.
i definitely think it was national debt helpline that I spoke to? I rang the number and that was the vm
he also rang up others in front of like a three way call and he rang up council tax and spoke to them and asked them questions and i could hear everything, he went through all my debts and rang people whilst I was on the phone and I even spoke to some of them myself to confirm things. This sounds genuine?

OP posts:
SoScarletItWas · 30/01/2025 20:23

Right. Slow down.

It sounds like you’re in touch with an insolvency practitioner to set up your IVA.

Be sure who they are and what you’re signing up to. Google them and check reviews eg on TrustPilot.

Don’t sign under pressure.

They might be legit but the way you seem to have got in touch does sound odd and potentially dodgy.

Cantthinkofonenow · 30/01/2025 20:26

Winederlust · 30/01/2025 20:18

An IVA isn't 'official' until your proposal has been put to your creditors and they have agreed to it. You shouldn't be asked to make any payments until then.

Oh no there hasn’t been any pressure to make any payments

OP posts:
CleanShirt · 30/01/2025 20:27

Cantthinkofonenow · 30/01/2025 20:26

Oh no there hasn’t been any pressure to make any payments

Yet.

dothedanceofjoy · 30/01/2025 20:30

Definitely look into a DRO and see if you're eligible