| T O P I C R E V I E W |
| chellie |
Posted - 10 March 2010 : 12:21:07
I am currently looking into debt management/IVA and am finding the information I am being given very confusing. My first step was to go to the Citizens advice who although helpful seemed to give conflicting information as to what I could spend, monthly allowances etc (told me I had to give up smoking and that I wouldn't be allowed to show anything from my bank other than food and petrol). I then spoke to a debt management company but when the information for a debt management plan has come through to me the financial summary states I would pay back 9k more than I owe now and be in debt for more than 24 years!! The Iva is looking like the best option with a DMP in the interim but as I only have 2 creditors (bank and a catalogue) with the bank being the main creditor I'm not sure if an IVA would go through.
This is all being made very complicated due to my housing situation. I am currently under a joint tennancy and am paying around £380 a month in rent and bills, after the weekend the other tennant is vacating the property and will continue to pay their share of the rent as per the tennancy agreement but due to me now having to pay the bills by myself I will now be paying around £480 a month. The house is on the rental market and at anytime I can be given my months notice to move out. I do not have the option of going home to my parents as they have no room and will have to rent a smaller property alone which could see my outgoings go up again. This is obviously causing a problem when it comes to starting an IVA as if one is done now my outgoings will be less and when they do increase I would have the potential of not being able to make the IVA payments.
What would you propose in this situation?
Thanks in advance |
| 6 L A T E S T R E P L I E S (Newest First) |
| Michael Peoples |
Posted - 10 March 2010 : 15:54:23
It might be worth doing an income and expenditure based on what it would cost to rent a smaller property. This would of course only be an estimate but would give you an idea of what payments you would be making in an IVA and whether your surplus would be enough to fund one.
Only having two creditors could make an IVA difficult to have accepted but depending on who the majority creditor is, it would be possible to speak to them or their advisers in advance and get an idea of whether it would be approved. A 24year DMP is way too long and if bankruptcy means the loss of your job, it is possible an IVA would be accepted even if it outside the usual criteria. |
| chellie |
Posted - 10 March 2010 : 15:20:32
I have checked with the security officer within my company and it could have a major impact on my clearance I checked before investigating my options. I don't smoke much and am constantly on the "i'm trying to give up" mission (I managed 2 weeks last time lol) I would be willing to try again but if I don't have to right now it would be great as its def helping me stay saine and gives me the excuse i need to nip out the office to make calls. £60 a month would be plenty as I only smoke about 5 a day but unfortunately i'm salaried so I don't earn overtime and my net monthly pay is quite low so there is no extras coming in just my wage. |
| Michael Peoples |
Posted - 10 March 2010 : 15:10:03
I am surprised that bankruptcy could impact on your security clearance and it may be worth a chat to HR or a union rep on a no names basis. If however, it is the case, a temporary DMP would be an option as would an IVA.
Finally, some creditors do not like smoking allowances but the guidelines do provide for £60 per month in an IVA. As a smoker myself, I realise that is not very much but added to your 50% overtime allowances you still should be able to smoke. The ridiculous thing is that if you did stop creditors would not allow you a gym allowance which apparently is one of the best ways to quit. |
| chellie |
Posted - 10 March 2010 : 12:43:27
Thanks for your help so far. unfortunately Bankrupcy is not an option for me, due to my job and the industry I work in (defence) I need to be security cleared and BR can affect it and if I lost my clearance I would then loose my job. |
| kallis3 |
Posted - 10 March 2010 : 12:36:59
Hi and welcome from me as well.
Michael's advice is excellent as always.
Visit www.iva.com for a list of companies and reviews and give one or two more a ring for free and impartial advice.
They will certainly help you decide, and the advice from CAB is not strictly true. You would not be expected to give up smoking, nor would you not be able to show anything else in a bank statement. |
| Michael Peoples |
Posted - 10 March 2010 : 12:26:50
Hi Chellie and welcome to the Forum.
From what you say bankruptcy certainly seems like an attractive option and a DMP would only be a temporary measure until your housing situation became clearer.
You could propose an IVA once you have found somewhere to live on a permanent basis but I think it would not be advisable to propose one until then as affordability is key. Speak to another IP firm as the advice is free but the recommendations may be different. |
