So Close To Entering An IVA

[randrandr]

Hello everyone!

This is my first post and I'm just posting for reassurance more than anything! Both myself and my husband have had a crazy few years and have gotten ourselves into a bit of a pickle! In the space of 3 years we have found out we were pregnant and have gone to living at my husband's parent's house, to renting our own place and needing to buy absolutely everything for the house (along with all the big baby purchases!). Then about 6 months after our daughter was born, we decided to buy our own place which wiped out all of our savings pretty much. Then one of our dogs got really ill and the surgery he needed totally surpassed his insurance amount (I'm talking as £12k - yes, really - surgery with £5k insurance cap) plus all of the follow up consultations and repeat medications, then we got married last year. Throw in my husband's car being written off twice (both times not his fault) and we are pretty much in the s**t. Together our unsecured debts amount to around £52k (£14k mine and £38k my husbands). We are at the point where we just need help and so I've been speaking with a company who offered us an array of options but we both decided an IVA would be the most beneficial for us.

I guess the point of this post is to just be reassured that we are not entering into a hell hole. It's completely our fault we have gotten into this mess and we both are more than aware we need to get ourselves out of it, but an IVA sounds extremely scary despite also sounding like a lifeline too!

We've got the IVA proposals here to sign and send back and then a creditors meeting can be set up, but like I said, it's just so scary! The IVA company we have gone with have been outstanding and extremely reassuring, but I guess I just wanted to hear it from people who have actually been in our position. What are the annual reviews like? Do they completely scrutinise your spending habits (not that we have anything to hide, I just wonder how much they question you and how much you feel 'watched', if that makes sense)? Our IVA company have reassured us that they don't see a reason as to why the proposal will be rejected by the creditors, but what if this DOES happen? Where do we go from there? There are so many questions constantly buzzing around in my head!

I know that long term this is the best thing for us. Neither myself or my husband have ever missed a payment on anything but we're at the point now where enough is enough and we need to get this mess sorted.

Any help and experience anyone would like to share - be it good or bad - please throw my way so I can be as fully prepared as possible!

[Foggy]

My IVAs ( mine and ex's interlocking arrangements ) were about the same amounts --- we were accepted at 32 pence in the pound.

The worst part, and the most 'scrutinized', is the initial I&E for the proposal ... after that each review is pretty much a mini version and you only need further evidence any significant changes. They will look at a few months wage slips and bank statements each time. They don't go into the nitty gritty.

Drawbacks are that you have to pay over the agreed share of any overtime or bonus's. You have to pay over any windfalls over £500 -- inheritances, lottery wins, etc. (And it is £499 it is yours, £501 it it theirs -- not the first £500).

On the positive side -- the relief is palpable ! No more worries about being chased and juggling everything every month. Yes, you have to live to a budget, but it is a manageable one and you soon get into it.

Whether it is a hell hole or not rreally boils down to your choice of firm (Who are you going with ? ) and the way you interact with your IP. Treat the IVA as a solution, not as an imposition. 5 or 6 years isn't that long in the grand scheme of things.

[randrandr]

My IVAs ( mine and ex's interlocking arrangements ) were about the same amounts --- we were accepted at 32 pence in the pound.

The worst part, and the most 'scrutinized', is the initial I&E for the proposal ... after that each review is pretty much a mini version and you only need further evidence any significant changes. They will look at a few months wage slips and bank statements each time. They don't go into the nitty gritty.

Drawbacks are that you have to pay over the agreed share of any overtime or bonus's. You have to pay over any windfalls over £500 -- inheritances, lottery wins, etc. (And it is £499 it is yours, £501 it it theirs -- not the first £500).

On the positive side -- the relief is palpable ! No more worries about being chased and juggling everything every month. Yes, you have to live to a budget, but it is a manageable one and you soon get into it.

Whether it is a hell hole or not rreally boils down to your choice of firm (Who are you going with ? ) and the way you interact with your IP. Treat the IVA as a solution, not as an imposition. 5 or 6 years isn't that long in the grand scheme of things.

Hi Foggy, thanks for the reply! Oh that's good to hear, we've already done the initial I&E for the proposal which wasn't too bad to be honest, so it's certainly reassuring to hear that from here on out it gets easier! We've literally just signed & submitted our proposals so I guess the next steps is waiting to get a date for the creditors meeting - how scary!

Yes, we're well aware of the drawbacks but I think we've gotten to the point where the good outweighs the bad and it's just something we will have to learn to live with. Thankfully I'm on a yearly wage and I get a set amount every month regardless if I do overtime or not, but my husband's overtime fluctuates a fair bit but we will just keep our IP update whenever he does a lot of overtime.

To be honest the past year or so has been a hell hole of trying to juggle debts and just getting by, so I'm hoping that we will finally be able to live within our means and budget better as a family! We are going with Financial Support Systems and they have been brilliant so far; no question is too daft for them and they have been extremely efficient and understanding! Yes, we're trying to view this less as a debt management plan and more as a way of managing our debts!