Any disadvantages in merely applying for an IVA?

[flat broke]

I have been in a self managed DMP for two years during which time creditors have been OK. But I don't really want to be in this for the next 30 odd years.

The way the money markets are going, I think that my creditors may not be so lenient in the future, so perhaps its a good time to get something more formal in place?

My main concern is "rocking the boat" and if I apply for an IVA, and its not accepted, then what are the creditors likely to do then?

Will it then become a mad scramble for charging orders, CCJ's or even bankruptcy petitions?

Bankruptcy is not really an option - neither is is selling the house! (well I don't want to consider these as options [:(])

Or should I just let things stay as they are?

Debts are about £75k, I pay £160/m pro-rata to 10 creditors, 1 CCJ for £40/m and there is about £40k equity in the house and £40k mortgage

Thanks

[MelanieGiles]

Is £160 per month all you can afford? If so it will take you over 40 years to repay your creditors. This does not seem to be a sensible option.

That said, you will struggle to get an IVA on such a low repayment, and the key to resolving your financial difficulties appears to be within your home equity.

Assuming that you have not included the £40 CCJ within the £160, you could have then £200 available, which culd fund a lower ended IVA, however you will be required to raise equity in your property at the end of the term which therefore is just delaying the inevitable. It might be a better idea to consider whether a full and final settlement could be offered to your creditors either on the basis of a re-mortgage or sale of the property now. This could be done either by asking your DMP company to arrange this for you, or via the more certain route of an IVA, where you only need to get 75% of the creditors agreeing.

[flat broke]

Thanks for that quick reply

With a bit of jigging of outgoings and some extra income via some freelance work, I could afford about £320-350 for an IVA. Barring any major disaster, I feel that I could maintain IVA payments at this rate + annual modest reviews

I am also looking at the potential of remortgaging and F&F offers.

But my big concern is what if some of the creditors look at the IVA proposal and don't like it, and then I presume they will have more detailed financial information about me and then may choose to pursue a different route to get a better individual return of the 'pot'.

Is that how the market works, or am I being too cynical?

[MelanieGiles]

I am sure that if the offer was made on the basis you have described, with a good IP acting for you, that you would be successful in getting an IVA agreed. In the meantime, you could continue to make your DMP payments, but that really makes no difference to the overall result.

You are perhaps being a little cynical, and I now suggest that you contact an Insolvency Practitioner who can give you detailed advice about your current circumstances.

[Adam Davies]

Hi
I would echo Melanies advice,time to really look into a soluton that will give you a difinitive end to your debts
Regards

[Soulgrowth]

I would agree flat broke ... having something a little more definitive is much better for the psyche, you will be able to see some kind of an end.

And it is good to think ahead.

Good luck

Debbie