savings,marriage and finishing early?

[basketman]

Hello,ive nearly completed my first year of an IVA,just a few questions,RE savings,i have opened a savings account and plan to put a little money in each month,can this money be taken from me by the IVA/Creditors when they see that i have spare money?also,if i wish to get married/start a family,what is my position with the IVA then?also does anyone know where it is possible to get a consolidation loan to finish an IVA early?as i feel that the IVA is going to ruin my life for the next five years if i cant do anything,eg save for my future!any experts out there who can offer any advice?

Cheers,

Basket

[kallis3]

Hi Basketman and welcome to the forum.

I think there are several people on here who have savings whilst in an IVA, but obviously not vast amounts! If you are able to make small savings from your allowance per month, then that, I believe, is permitted.

As regards marriage, I am not sure of the position there, so will let one of the experts answer that.

I personally would not consider getting a loan to pay off my IVA. Apart from the fact that your credit rating is shot to pieces, it is taking out extra credit, and why would you want to do that?

That's what got you into this mess in the first place.

[Viki.W]

Hey basket, if you're anything like me then I would have thought you'd be sick of consolidation loans! I don't see the sense in getting a loan to pay for an IVA. No-one would give you one anyway. Are you struggling to make your monthly payment? If you're able to save a little each month from cutting back then your money should be safe. Hang in there, I'm sure it will work out for you. X

[basketman]

My situation when i started my IVA was alot different to waht is now,i had got into debt whilst training for a carrer,when i started my dream job i was getting paid very little,which means my IVA payments were only £230,a year down the line i have recieved a pay rise which means my payment is going to almost triple to nearly £600.My total outstanding debt was £34000 when i started my IVA,i just think it might be easier to get a loan,pay it off,clear my credit report and get on with my life,i am now 30,have a long term girlfriend who i would like to marry,but with an IVA things like moving house,buying a nice car,even saving for my future(i dont have a pension)are extremely difficult!i am also still having constant problems with solicitors on behalf of the creditors contacting me still sayin they are going to take my house etc!also,with the cost of living going up and the fact that the industry i work in is in a massive slow down at the moment could cause problems!
what can i do!

basket

[Viki.W]

Basket, once in an IVA you are protected from your creditors so they are actually not allowed to pursue you for money or contact you at all. You really need to speak to your IP about this. I can't advise you but in my opinion, you will not be better off taking out a loan to pay off an IVA. Your creditors will want to know where the money has come from for an early settlement and I don't think you'd get a loan, or even if you did, at a decent rate. Please wait for an expert to advise you but I think you should talk to your IP about your possible change in circumstances. Good luck.

[MelanieGiles]

Why do you think the IVA is going to ruin your life? IVAs are meant to bring certainty to your lives, which may have been affected by struggling with debt for a long time. You will never find a loan to enable you to pay off the IVA, and if you are able to put a little into savings it does not sound as if the payments you are making are too high. It is great that your payments have increased over the period, as this clearly means that you are making leaps within your career which may not have been possible as a result of the IVA. My advice is to batten down the hatches and stick with it - the benefits you will get at the end will be priceless, and it is bound to turn you from spender into saver.

[plasticdaft]

I can understand why you would want to leave your IVA,you can see that your payments are going to shoot up. You could look to getting your girlfriend to borrow to allow you to offer a full and final payment to clear your IVA but your credit rating will still be poop(to say the least). IVA's are restrictive and are meant to be so. Its not about helping to pay off debt,its also about re-educating yourself to manage a budget and not get into trouble again.
Only an opinion mind.
Good luck whatever you decide to do.

[kallis3]

I would give anything not to be in this position, but due to being stupid with money, I am.

I know that for the next four and three quarter years my life will be restricted, but I think that is a small price to pay to be able to get my life back on track and have no debts.

[plasticdaft]

I agree Jan,for us its about learning to live without credit,I have had several consolidation loans and just ran up credit again so I am going to make sure that this trust deed works.

[basketman]

Thanks for your input everyone,its a bit of relief to e able to talk to people in the same position!i have a lot of questions!
Melanie,a quick question,i own my house with a friend of mine,if i want to move out and into a rented prperty with my girlfriend,is this possible?i would be able to rent out the room in my house to put towards my half of the mortgage,but i would also be paying rent myself on the house with my girlfriend.is this allowed or would it be seen as wasting money?after all,i am 30 and want to be able to lead a normal life as possible,which includes moving in with my girlfriend!also,on a similar note,am i allowed to go on holiday,or is this seen as an unnecasry expense?

basket

[Adam Davies]

Hi
You can move out,get married etc.Life carries on in an IVA,you just keep in touch with your IP and if your disposible income increases you simply pay more into your IVA.
Even if you end up paying a 100p dividend you have saved on all the hassle and interest,also your debts are all finished after five years and there is not many people with zero debts in their thirties !!
Regards

[basketman]

cheers andy,

so you are allowed to increase you living expenses/outgoings? will they tell me that,no you cant move out because its a waste of money,you need to stay in your house?

cheers,
basket

[MelanieGiles]

Yes - there is no problem in moving in with your girlfriend, so long as it does not affect your ability to fund your IVA payments. An IP has no right to dictate to you how you run your life, our job is merely to ensure that your creditors get paid, and holidays are allowed so long as you can save up for them from your contingency allowances.

[Lisa2009]

It's a shame you feel like the IVA is going to ruin your life for the next 5 years.
Most people on this forum only see it as a new beginning, a better life free from debt.
The time in your IVA will rehabilitate you and at the end of it all you will really apreciate it. You can hold your head up high in the knowledge that you did your best.
Speaking from experience, its a far better life once you come out of the other side and its easier to save because you get so used to living to a budget. We still live to a pretty strict budget, although not as strict as it was in the IVA.
Its such a good feeling now to be able to watch the bank account and see it gradually growing, rather than BIG fat zeros
Although it seems like such a blow that your payments have increased so much, you still should be very proud of yourself. Your career is moving on and in a few more years you will be completely debt free.

[basketman]

again,thanks everyone for your replys!

i spoke to the IVA lady this morning and as far as i understand i can move out and my living expenses can increase,as long as i can still afford to contibute,she did mention that when my review comes along,i will be able to submit higher expenses due to the rise in living costs,petrol,food etc.does this sound right?

also,does anybody know about how much we are allowed to save?i want to start saving for the future but i dont want to start putting some away then have it all taken from me after 4 years,ive never saved before!

also,a question for the pro's,is it possible to end up paying more than i actually owe,eg say i owe 30000,my payments go to say 650 per month,in four years i will have payed 31200.does/can this happen?if this does happen will they still want to take the equity out of my property?if so,who gets the money?

cheers,
Danny