Is an IVA a good plan for me?

[dmd]

Is an IVA suitable for me? I have been left with about 18k of debt in my name from a previous partner. For the last few years I've been scrimping and scraping, paying the minimum amount each month. The last few months has become a real struggle, with lots of late payments.

Fortunately i am living with my parents so i have very little rent to pay (they do not know about the debts left to me), but i am worried an IVA would impact on them somehow or give the address a poor credit status? i owe to RBS, mint, barclays, egg, cap 1, morgan stanley, TSB, argos, barclaycard. £4,800 is owed to RBS - that is my largest debtor.

i could afford £400 per month at a push, but £300 would be more affordable. Is an IVA a good plan or is there something more suited to my circumstances out there?? All help and advice very much appreciated!!

[louisa.s]

Hi there and welcome to the forum, I'm sure one of the experts will be along but on the face of it, it does look you can put together an IVA proposal although a Debt management plan might also be feasible as your debts are not huge and if you can afford to repay £300 a month (if not a little more) then over 5 years on a DMP you would have paid back £18K with no IP charges. I am right then CCCS can help you with this. But what you should first and foremost is talk to an insolvency professional about your options. With reference to your parents they can disassociate themselves from your credit and from personal experience it is a good idea to tell them and make sure that you are realistic aboput your outgoings and cover everything (I forgot I wore glasses so didn't budget for it - oops!)
Louisa

[Welsh Boy]

dmd

Welcome to the forum, I am not a qualified Insolvency Practitioner so can`t comment on whether an IVA would be suitable for you or not, rest assured you have arrived at the right site and you will have the knowledge of some of the best in the industry to give you qualified advice shortly, good luck. Tony

F.P.C. 1,2,3 Qualified
Financial Planning Certificate
CeMap Qualified
Whole of Market Mortgage Broker
Managing Director : Debt Advisory Bureau
Principal : All Mortgage Products

www.debtadvisorybureau.co.uk
www.allmortgageproducts.co.uk

Directly Authorised with FSA :304244

[Andrew Graveson]

Hi dmd,

Based on your numbers as provided an IVA may not be appropriate for you. An IVA will often run for 60 months. If you split the difference between the numbers you provided and use a £350 contribution for 60 months you would actually have repaid £21000. I do not think therefore that an IVA would be acceptable to the creditors that you owe £18000 to.

Louisa makes a good point that debt management might be another option. The two options are to use a "free" operation such as CCCS (who are funded by your creditors) or a commercial debt management company who would charge you to set up and manage a DMP. There are advantages and disadvantages to both and it might be worthwhile calling one "free" and one commercial company to compare what they offer for you.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[Welsh Boy]

dmd

Andrew is precisely the sort of person you could do well to contact his knowledge is second to none in this area. Tony

F.P.C. 1,2,3 Qualified
Financial Planning Certificate
CeMap Qualified
Whole of Market Mortgage Broker
Managing Director : Debt Advisory Bureau
Principal : All Mortgage Products

www.debtadvisorybureau.co.uk
www.allmortgageproducts.co.uk

Directly Authorised with FSA :304244

[Adam Davies]

Hi dmd
On the info that you have given a Debt Management plan seems suitable and you will find it more flexible than an IVA and less harmful to your credit rating.
Speak to several companies before committing
Good Luck

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Andrew Graveson]

Thank you Welsh Boy for your kind words.

I've just read in Mortgage Distributor magazine that Mike Burridge is considering "Adding an IP to our portfolio of professionals....". Exciting times at Leybridge it would seem.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[Welsh Boy]

Andrew

I was speaking with a couple of professionals who I have known for years and who run a large packaging and mortgage broking arm and have a raft of qualified advisors at the recent Mortgage Expo where they were exhibiting and they informed me they are intent on coming aboard to give us all the benefit of their qualified advice. We should all see the benefits of this for the posters on here. Tony

F.P.C. 1,2,3 Qualified
Financial Planning Certificate
CeMap Qualified
Whole of Market Mortgage Broker
Managing Director : Debt Advisory Bureau
Principal : All Mortgage Products

www.debtadvisorybureau.co.uk
www.allmortgageproducts.co.uk

Directly Authorised with FSA :304244

[Andrew Graveson]

Sounds interesting as the packager standpoint could be important to users of this site (in addition to the information provided by the CeMAP qualified advisers here).

Sounds like the packager community has become more aware of the site? I guess that's where articles like the one I mentioned add more relevance to this site as a broader community gets involved.

Did you enjoy the Expo?

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[Welsh Boy]

Expo was good Andrew, there is so much happening in the industry, obviously the credit crunch was a big topic of conversation. It`s strange how you see the same faces again and again over the years, must be the same in most professions though. Tony

F.P.C. 1,2,3 Qualified
Financial Planning Certificate
CeMap Qualified
Whole of Market Mortgage Broker
Managing Director : Debt Advisory Bureau
Principal : All Mortgage Products

www.debtadvisorybureau.co.uk
www.allmortgageproducts.co.uk

Directly Authorised with FSA :304244

[Andrew Graveson]

Glad you had a good time there. A number of my colleagues and associates have taken the time to call me to tell me what a good and professionally useful time they were having.

Won't be missing it again!



Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[MelanieGiles]

Does that mean that Mike is going to be advertising for IP jobs? Any vacancies Mike, or have I misread the post!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp