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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Anyone ever got an IVA?

42 replies

nativitywreck · 13/12/2011 11:52

And if so, is it possible to keep one credit card (the one i am up to date with)
.
I have no CCJ's or anything, and no actual defaults (yet) but I am taking credit counselling advice, and based on my current income/outgoings they have advised me to take an IVA.

I am not sure whether to hang in there another month, try to get more work, and risk a few charges etc from my creditors, or just do the IVA.

Gutted really, as it took me five years to get my credit to a good place-all undone in the last 6 months.
(Thanks George.)

OP posts:

Robins · 13/12/2011 20:28

Oh and I will correct a common misconception but please feel free to google and doublecheck but.... An IVA generally runs for five or six years only and you drop off the IVA register SIX YEARS AFTER STARTING, not SIX YEARS FROM FINISHING.

If you own a house, you may have to re-mortgage for the last year of the IVA but we only rented so that didn't affect us. I would recommend IVA as opposed to debt management. Your credit is down the swanny now anyway so.....good luck whatever you decide!

SalmeMurrikAgain · 13/12/2011 21:36

This reply has been deleted

Message withdrawn at poster's request.

stabiliser15 · 13/12/2011 21:46

It may also be worth considering a DRO (debt relief order), depending on how much debt you are in. I am an insolvency lawyer and would be happy to review things with you to decide what might be most appropriate if you like - PM me.

Arion · 13/12/2011 21:55

Cccs helped me, 10 years ago I owed about 10k, all paid off a long time ago. They work with you to sort out a budget of what you need each month to cover essentials (rent, council tax, utility bills, food) and then pro-rata the remains of your income among your other debts. They contact the creditors on your behalf to work at cancelling the interest and fees so you can work at paying off what you owe without incurring more debt.

As far as payment goes, unless it has changed it is not the creditors that pay, it is funded by the way payments are set up. You pay the money that is due to the creditors at the start of the month, then CCCS forward your payments to the creditors at the end of the month. The interest on the money whilst it sits in CCCS's bank account, before it is paid over, pays for the debt counsellors.

maddening · 13/12/2011 22:05

no, you can not keep a credit card and if you obtain credit they could make you bankrupt for breaking the terms of your iva. And they could make you bankrupt for up to 15 years in cases of gross negligence.

tbh you shouldn't be using credit if you are in financial difficult.

a dmp will show on your credit file but is nowhere near as bad as insolvency.

Robins · 14/12/2011 10:23

SPEAKING FROM EXPERIENCE....Having just finished our IVA in August this year, we had no assets to protect, just living in housing association accommodation, we had debts of £25,000 and our payment was the minimum of £200 a month (what we could afford and just scraping through to qualify for the IVA) but that went up to £290 for the last five months as we were seen to be earning a little more and we were happy to do that to see it through...

The only loan not included was a car loan we were finishing off i.e. a secured loan. When that had finished we were supposed to add that £190 a month to the IVA payment. We couldn't though as we had struggled to pay that each month anyway so instead they extended our IVA for six months so it was for five and a half years instead of five and we will drop off the insolvency register in February 2012. IT DID REALLY WORK FOR US! And at times we were able to miss a month and pay an extra £50 over the next few months. We took it seriously and they allowed us little bits of leeway now and again but ultimately it was all done and dusted within the timeframe.

DoesNotGiveAFig · 14/12/2011 10:27

Robins quit shouting. There are others here with relevant experience to offer. IVA worked for you but is not necessarily best for the OP, who has an INSOLVENCY LAWYER offering advice. I'd say they are more qualified than you...

Original poster

nativitywreck · 14/12/2011 10:58

Hmmm. I dont think an IVA or bankruptcy is useful to me really. Actually, not sure I know the difference between the two,

I have no assets, and am 8.5 k in debt with a few different creditors.

Payplan offered to set up a dm plan for me, but I am going to try sorting this out individually with each creditor (have already spoken to Barclaycard and Halifax bastards bastards) and arrange token payments with each.

If I cant get them to freeze the interest I will go back to Payplan to do it.

Presumably, when and if things pick up for me over the next year, I can begin paying my debts at the previous rates and so build my credit back up again?
With an iva, I wouldnt be able to do this because it would be set in stone for a six years.

OP posts:

Robins · 14/12/2011 17:45

You shut up too, I come from a family of lawyers thank you and have worked with lawyers myself for 20 years. I am not saying IVA is right for this person, just giving them the benefit of my experience. To be honest, nearly everything everyone has said on here regarding IVA is wrong anyway I HAVE HAD ONE!!! So good riddance and good luck to OP.

Robins · 14/12/2011 17:47

Actually I worked with Solicitors, when solicitors were solicitors not jumped up clerks. You have really peed me off. Signing out!

stabiliser15 · 14/12/2011 21:37

Well this "jumped up clerk" (cheers robins) thinks you may be eligible for a debt relief order, given what you say about the level of debt and your asset position. Offer to discuss stands.

FabbyChic · 14/12/2011 21:40

Bankruptcy shows up for six years after you are discharged! Not from the start date.

I know because my bankruptcy finished two years ago and its on my credit file for another four years.

notfarmingatthemo · 15/12/2011 11:09

we went withthese people. We payed all are debts. The no. is free and so is the help. They are a charity. Our dd was about 6mth at the time she is now 10years we have managed to change are mortgage. We don't have any other credit but then we have learnt to live within are means. They take all the worry away from you, they are fab.

Original poster

nativitywreck · 15/12/2011 11:28

Thanks notfarming.

What is a debt relief order?

I might be OK actually as I literally just got a stack more freelance work.
If things pick up in the New Year, I will escape by the skin of my teeth!
Fingers crossed..

OP posts:

DoesNotGiveAFig · 15/12/2011 11:34

Robins: If you didn't want to come across as a twat, you shouldn't have started your post by shouting "SPEAKING FROM EXPERIENCE" as if nobody else has any.

You've worked with lawyers for 20 years - and what? You want an award?

Your shout implied that everything everyone else said was crap...which is totally unfair - why is your experience more right and valid than anyone else's? You've also insulted an entire profession with your toy chucking, so round of applause to you, well done.

Oh...you've had an IVA? You MUST know ALL there is to know about this person's circumstance and how IVAs work then.

ChloeRM · 30/03/2015 14:29

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Patapouf · 30/03/2015 15:32

Zombie thread. OP WAS IN 2011

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