Have you got one....?

Stu · Joined: 25 Apr 2007 Posts: 15

In order to help me make my decision between IVA and Bankruptcy, i have been applying to lots of different forums to see if i can speak to others in my situation and take any advice they have.

Is there anybody out there who is in an IVA and would not mind telling me what it is like and how you are coping?!?!

i really do not know which way to turn.

hard-times · Joined: 23 May 2007 Posts: 3 Location: LIVERPOOL

stu,.

i can't believe i'm talking on a forum!
I'm in an IVA myself and am currently not finding it too bad. i've heard some horror stories but guess it depends on how disciplined you are and whether you will be able to keep to the budget in future. i started my early jan last year and was a new years resolution for me - guess turned over a new leaf.

good luck and if you need any help i've got bugger all to do at work today so fire away!

onl thing i would say is be carefull and committed.

Although fees don't really make a difference to you as it comes from what is paid to creditor(or so i was told!!!!!!) don't let anyone shaft you in dispersments like charging £50 a year to keep your file on there shelf!

dancing_shoes · Joined: 19 Jun 2007 Posts: 1

Hi Stu,

Well my partner and I have been in an IVA for just over one year now. I have had no problems through out the whole process and I am coping perfectly but my partner had trouble getting his IVA to be accepted. One of his creditors who he owed the most money to had rejected it… the insolvency practitioner then came to an agreement with the creditor which meant they then accepted but with increased contributions (an extra £50). Everything is running smoothly and the Insolvency practitioner’s really take care of everything we just make a payment each to them once a month – completely stress free now! Very Happy

I was in a similar situation to you before going into the IVA. I wasn’t sure if I wanted to go ahead with Bankruptcy or an IVA. I honestly couldn’t be any happier going down this route knowing I will be completely debt free and not only that… it won’t be advertised in the newspaper unlike in bankruptcy!

60sgirl · Joined: 18 Jun 2007 Posts: 1

Hi Stu,

I have also had my IVA for a while now and it seems to be running great the only problem was getting the IVA through but ClearDebt helped so much and when my creditors asked for an £100 extra than what was originally offered they actually got it down to just £50 because there was no way i could have afforded more than that.

The only problem i see is my annual review which is coming up shortly! I have worked quite a lot of overtime recently and im scared that i will have to pay more money into my IVA but i agree that it is better than bankruptcy any day of the week.

Clarke_Kent · Joined: 18 Jun 2007 Posts: 1

Well Stu,

I hope you make the right decision for you - because I certainly didn't!

I saw the option for an IVA but I didn’t bother looking into it. The debt I had was all in my name but only became a problem when my wife left me for another man. My EX wife spent majority of the debt but as it was all in my name I was accountable for it all. I could not afford to pay it back on my own.

I decided that I did not want to repay my wife's debt back and I had heard that Bankruptcy was now quite an easy option, so that is what I did.

I didn’t look into the facts properly, I was very stupid. It turns out in my profession, they take dim view of bankrupt employees and so I soon became out of work. I lost my home and I saw my own name in the Newspaper. I am a very proud man, I found that difficult.

I tried to see if I could apply for an IVA as it can annul bankruptcy but it was too late, and to be honest, I had lost the will to fight something which, at the time, felt so unfair.

I am not trying to deter you against bankruptcy Stu as I know it is the solution for a lot of people, but I urge you to check ALL the facts before you take either procedure. You need to see what implications it will have to your life.

I only wish I had found a forum like this to chat to people in similar situations when I was going through it all - instead I had to deal with it alone.

Good luck to you Stu, I am sure you will make the right decision.

Boo · Joined: 18 Jun 2007 Posts: 8

A friend of mine went bankrupt and she thought it was the best thing she ever did. she didn't have a job and lives in a house she rents from the council so she had nothing to give to them. she is free of it all now and can even get credit again. i know it doesnt work like that for everybody though. i am in a lot of debt but i own my home and have a nice car and i do not want to give that all up. i think there are a lot more options out there than there used to be or maybe they are just more popular as most people are in debt and do not seem to be ashamed about it anymore

Stu · Joined: 25 Apr 2007 Posts: 15

thank you for all your responses, i have now applied for an IVA as i think it seems like my best option.

I am sure like a lot of others with money worries, i am suffering from stress!!

i am frightened now that i will not even be able to take a holiday for the next 5 years.

Is there anyway that i will be able to obtain a savings account and put in my expenditure 10 or 20 pounds a month to save up for a trip to spain or something like that?

Anna · Joined: 10 Jul 2007 Posts: 5

Hi Stu - with regards to holidays they do allow for holidays in your monthly expenditure. I think I said that I would need to save up £40 a month for a holiday for the year. They do allow this. Also, they allow payment holidays. I took 2 months in my first year which means you have extra spends for your hols!

However the only bad experience I had with my IVA is that I was so desperate for help that I rushed into it and didn't really understand it fully. The company I went through never really explained to me that my monthly payment would change should I get a wage rise. For example:

If my payments were £200 a month and all of a sudden I got a rise of an extra £50 a month - I had to put pack half of that into the IVA monthly payment. Fair enough you might think?? So £25 added to the IVA... You would think that over 5 years it would pay your IVA off quicker.. apparently not. I never found out where this money went.

So obviously in a 5 year period you are going to get a pay rise at some point, but you are still tied to that 5 year period regardless of if your wages mean you are paying off more than what you owe. Does this make sense?

This is why I ended up getting out early. I was fortunate enough to have someone who could help me out.

Stu · Joined: 25 Apr 2007 Posts: 15

Anna,

thank you for your post.

i hav been looking into what you said and have called a few different IVA companies with questions to see what is offered.

Every company i called said the banks would NOT accept monthly expenditure for holidays. They will give you a 'contingency fund' for you to do as you wish with but not a holiday allowance.

Also, i discussed payment holidays and this is in case i get stuck and will only be sanctioned if i am in trouble and if the supervisor approves it...?
It also has some information that i read about it just now on this forum.

It sounds like your IVA is with a Mickey Mouse company if you haven't been advised of payrises.... 3 out of 4 of the companies i contacted advised me of that over the telephone on our first conversation.

Anyway, i am now about to sign the proposal for my IVA after figuring out that it probably is the best option for me! thank you for all your advice guys and will keep you posted on my progress!

Marc2844 · Joined: 02 Nov 2007 Posts: 2

Yes i got one, but now wish i hadn't Confused

i sometimes think going bankrupt would have been the better option Confused