Is IVA for me?

[CarlH82]

Hi all.

I have debt at around £17,000. This is with a number of creditors including payday loans and mobile phones.

I signed up with a debt management company and started off paying my monthly payments normally. After 3 months they called me and told me that each creditor has agreed a payment of £1 per month. Now this to me is rediculous, but it was keeping the creditors off my back a little. After working it out it would have taken around 30 years to clear.

I ask if an IVA is for me as my disposable income is a little more than it used to be. I am on a low wage but I could possibly afford to pay around £180 every month toward a realistic plan.
I am aware that an IVA is normally a fixed term, but do you think that £180 p/m would be enough over 5 years to clear / write off a majority?

Thanks in advance
Carl

[luluj]

Welcome ... On paper it appears an IVA might be ok but I would get advice from two or three IP's. You might want to look at www.iva.com as a starting point.

[Foggy]

Hi. I echo Luluj's advice. Whilst DMP's can work for some, they are generally more of a stop gap while you sort everything out. An IVA is more onerous, but has a distinct end point and allows you, in the fullness of time, to have a completely fresh start.

[MrsR]

HI Carl, I started with a DMP, but the creditors were still adding interest,charges and defaults - which meant the payments that I was making ( over £200 pm) were not touching the balances at all. I decided that an IVA was the best route for me ( I have £64K of debt), as it means that I can pay it off in 72 months max and be free again !!

Always speak to your IP

[Rosepetal]

hi,welcome!

echo above advice to speak to 2-3 IP's & get some advice. you need a realistic on budget/allowances for food etc counting things like clothing allowances,prescriptions etc.

we didn't have a proper budget until we took advice.

don't go with anyone wanting up front fees.
we went with Mel Giles- she posts here. others will post who they've used if you ask & check out the link too .

[plasticdaft]

Sounds like a spectrum finance type agreement. A pound a month to each creditor is going nowhere.

Talk to a few insolvency firms and see what they say but dont agree to pay more than you can afford.

Have you thought about bankruptcy?

Paul

[kallis3]

You certainly do need to speak to some other companies via the link posted above.

What you are doing is never going to work. It's not a proper debt management plan.

What company are you using?

[CarlH82]

Thanks for the replies.

I was using a company called Immediate Financial. They were helpful but at the same time not helping much if that makes sense.

I will be calling a few IP's today to find out what my options are.
I'll keep you posted to let you know how things go.

And what link are you referring to? I'm either blind or there isnt one there

Thanks

[MrsR]

Hi Carl, the IP link Luluj posted is www.iva.com - type it into your search engine if it won't open.

I am using Melanie Giles company too and they are great!

[CarlH82]

I forgot to ask, is there any particular IP that anyone has had any personal dealings with that you found extemely helpful?

I really would like things explained in "plain english" as I am very easily confused when it comes to paying out (hence the debt)

Thanks again

[kallis3]

You could speak to any of the professionals that post on here. They can be found under th Ask a question link on the left hand side of the page. They come recommended.

[Rosepetal]

Hi carlH82, we went with Mel Giles, other IP firms i've seen posting here include Grant Thornton, McCambridge Duffy,Payplan, Debt Free Direct. i'm sure others will post who they're with & give you feed back.

good luck.

[CarlH82]

Juzt spoken to Mel giles. She or a someone will ring me later for a bigger picture of my situation.

Fingers crossed that something can be done

[kallis3]

They come highly recommended on here. You'll be fine with them.

[Rosepetal]

well done! it takes courage to face the problem.

our first calls were with Tina,she was so easy to speak to. have your things together - rent/mortgage costs,insurances etc & who debts are with & totals if you can. don't worry if you've not got it all at this point.

post how you get on[:)]