is IVA right for me ?

[anth]

Hi there

been thinking about iva's for a few weeks but havent really took it any further. i know i should get advise from companys but i didnt want to be pushed and i would like some real life feedback from people who have done it

here is my situation...

living with parents
hire purchase - £430 per month (over 5 yrs had it 4 months)
AA loan - £107 per month (over 3 years had it 2 years)
x3 credit cards total £2500

other out goings
mobile phone -£35 per month
car tax - £80
monthly amount to parents - £100

income £1050 after tax


am i a "good" candidate for an IVA ?

the reason i ask is the chunck of it is from a hire purchaced car and im not sure if this could be included with the IVA?

thanks in advance

[flumpy dog]

hi anth welcome to the forum.
im no expert but im only starting the iva journey-i know there are some brilliant experts on here who will allay your worries and help you [:)]

[Viki.W]

Hey anth, welcome to the forum. Are you actually struggling with your debt repayments? You seen to be paying a big chunk of your income on the HP car, is there any particular reason you need such a high value vehicle?

[plasticdaft]

Given the relatively short period you have had the hp why not just hand it back??

[anth]

thanks for your replys

viki --> im not hugely stuggling but i never seem to have much to myself each month therefor getting me down

plasticdaft--> would that be an option ? i dont need the high value car and to be honest getting rid of this would be great, can i just hand it back and have nothing to pay ?

thanks again for all comments and welcomes to the forum

[kallis3]

I think you might find that if you hand it back you might become liable for the outstanding amount.

I would check your agreement to see what it says.

[flumpy dog]

how much do you owe in total roughly anth ?

[anth]

HP Finance = 18.5k (before APR)
AA Loan =2.5k
CCards = 2.5k (before APR)

i think those figures are right

Thanks

[kallis3]

You would probably find that in an IVA you would be expected to downsize your car anyway as it is obviously an expensive one and wouldn't be allowed.

If you did become liable for the whole amount, you should be able to include this in an IVA.

Can I suggest that you give one or two IP companies a ring to seek advice? They will give you all of the options available to you and advise you of the best one for you.

There are several on here who come highly recommended. Melanie Giles, Andy Davie, Vikiw, to name but a few. Their details can be found under the experts page - you can find the link on the left hand side of this page.

Alternatively, visit www.iva.com where you will find more.

Initial advice is always free.

[anth]

thanks Kallis, i think i will do that tomorrow

just trying to get my head round what to do, also thinking about bankruptcy but thats a little extream

Thanks again

[kallis3]

You might find that bankruptcy is the way forward. With such a large amount outstanding on the car, and your other debts only being small ones, an IVA might not be viable as the HP company holds more than 75% of your debt.

BR is not as bad as it is made out to be. It cost £495 at the court and then you might be required to make payments for 3 years, but then it is finished.

Give them a ring tomorrow - they'll give you definite advice.

Keep posting as we are all here for help and support at anytime.

[plasticdaft]

Must be a crap car if you want rid of it after only 4 months!!! Do you think it was a mistake to make such a pricey purchase??

Good luck in sorting yourself out.

[anth]

its not a crap car, its really nice! two months into the deal i had to take £100 per month wage cut.

and i think it was a mistake, im only 22 and having to cut back on nights out due to money, its hard !

[flumpy dog]

my advice is not as good as an experts but you have also the option of a debt management plan, but the drawback there is your creditors can still add interest to the outstanding amounts but it may buy you a little thinking time and then later on go down the iva/br route ? have a look on the site kal posted to help you decide-good luck ! we're all here if you need us [:)]

[kallis3]

That's right Fergie, a DMP is also a consideration.

Don't forget with your income and expenditure to put everything down, car insurance, petrol, clothes, haircuts, contingency money, food at work. It's amazing what you forget to put down.