Considering an IVA

[BikerT]

I split with my partner last year and lost everything, I'm appx £47k in debt and have 2 children to support with what seems no way out.
I've spoken to a company regarding my options as my debt is growing faster than i can control, they mentioned an IVA as an option, and is sending me details through the post.

I have a question on my mind though ! The company i spoke to advised me to cancel all my direct debits and move my wage payments to another account ( with no overdraft )if im definitly sure about going for an IVA, but i'm worried that this is going to cause more problems and stress as , as soon as i cancel them they are going to start ringing up! Is this the correct advice ?

TIA

[Julie]

Hi and welcome to the forum.

If you have made up your mind that an IVA is the way forward then yes the advice given is correct. You should out the money you would pay to one side though as you will need capital to open up another account and maybe to make your first IVA payment. Unfortunately the calls will start but be strong and tell them your entering an IVA -it will take time for the penny to drop, but believe me its worth it in the end.

You'll get lots of advice and support on here - good luck x

[MelanieGiles]

I would not do anything until you have had a proper consultation with the insolvency practitioner who will be acting for you. An IVA is a big decision to make, and needs putting together very carefully so until you have made your mind up I would be incline to make at least token payments to your creditors based upon what you can afford.

[BikerT]

Thank you for your quick replys.

I was initially advised that Bankruptcy would be the better option, but i have read into IVA's and would prefer to do this !

I am definitly going to try the IVA first.

I already have a second account that i used for groceries etc... It has no overdraft and is only a basic cash account so im hoping this will be OK.

Ive never missed payments to any of the creditors and have no arrears on rent etc... So this is a very hard step for me to take ! It has taken me a while to admit that i cant budget my way out of the growing debt.

[MelanieGiles]

Sounds like you are right behind the IVA, Biker, so good luck with the process and do let us know how you get on.

[plasticdaft]

Welcome to the forum BikerT,this place is full of helpful and informative people. It is a godsend(and I am not even religious).

Paul