I have been thinking of doing an IVA but don't know how it will effect me, short and long term ?

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Kelly.r

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Post by Kelly.r » Fri May 20, 2016 4:06 pm
Hi I am 30K in debt and have got to the point I don't know how I can get myself out of it. I would love to save to buy my own house but until Im out of the debt I don't know how I can.
I have been thinking about doing a IVA but don't know how it will effect me in the short and long term? Will I even be able to have a phone contract etc?
 
 

Shining

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Post by Shining » Fri May 20, 2016 4:14 pm
Hi, welcome to the forum.

You've found the right place to talk to people, both in an IVA and some out of one, along with our professionals who are experts in their field.

You an have a phone contract. The effects will be that your credit rating will be shot and take a little while to recover, 6 years from date of IVA acceptance you can start rebuilding it.

Your disposable income will be paid into the IVA, if you inherit any monies during the IVA it will be payable to the IVA (up to the value of the original debt, plus fees and possible interest).

Basically, you'll be accountable to your IP for at least 60 months, 72 in some cases.

However, I completed an IVA and didn't find it too bad. Some companies have better communication skills than others and I would urge you to talk to 2 or 3 rather than go with the first one recommended/chosen.

There is life in an IVA, albeit a frugal one and definitely life after. It's an excellent debt resource for some but not for all.

I'm asuming from your post that you don't own your own property at this point. Lots of our posters and more I'm sure have managed to secure a mortgage post IVA so that is a possibility.

Any questions, just ask, we're here to help.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Foggy

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Post by Foggy » Fri May 20, 2016 4:20 pm
As Lesley says, it's not a bed of roses ..but not all doom and gloom either. The key is getting the right firm --- it is important to chat to a couple to find one you gel with. Ask if you can speak to the IP directly should you wish to (some firms don't allow this).
You don't own a property at the moment so the equity question is, thankfully, not relevant.
You will get lots of support here --- ask away -- no question is a silly one :-)
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Lisa Thomas

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Post by Lisa Thomas » Fri May 20, 2016 5:03 pm
if you don't own any assets Bankruptcy may actually be better option for you. Suggest you make an appointment to see a local firm of IPs for a free initial mtg to run through you options.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Kelly.r

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Post by Kelly.r » Sat May 21, 2016 9:15 am
This may sound really silly but I own a horse, and she is litrally my child (I have no children, my dog and horse are my fur babies) will this be considered a 'luxury' that I wouldn't be able to keep if I went into a IVA?
Also I earn commission at my job and have been told that if I earn above my salary in commission this is taken straight away?
Im just trying to see if this is something viable or I keep juggling credit cards and losing sleep about the trail of debt that is now followed me into my 30's! (its all from my ex partner years ago that I have been left burdened with)
Thank you for your advise so far
x
 
 

MrsR

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Post by MrsR » Sat May 21, 2016 9:47 am
Hi there,

You can have an allowance for pets within the expenditure guidelines, but some IVA companies are more understanding than others, when it comes to pets.

With regards to commission, they initially look at your basic income and use this as a guide to what you bring in each month, but if you get commission monthly, they may be able to average this amount and incorporate this into your income, which will increase your disposable income available.

If you do not get commission monthly, they usually work on a rule of 10/50/50, which means that they let you keep the first 10% then the remaining balance is split 50/50 between you and the IVA .

I would do as others have suggested and speak to a few companies, ask as many questions as you like and you can then decide.

My hubby and I had £65k between us and struggled when his income took a huge reduction, followed by redundancy in the end, so for us going for an IVA was the best decision - it's tough at times - no spare money for holidays, or buying a new car etc, but you will learn a lot about the importance of money mange want as you have no choice but to budget.
Even now 13 months after completing early, I'm so frugal, and have religiously put away the money we were paying into the iva, so you do learn a lot!
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!

Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA :)

Completion Certificate received- 30th April 2015!!
 
 

Foggy

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Post by Foggy » Sat May 21, 2016 9:55 am
Some firms will consider a horse an asset, whilst the more enlightened IP's do recognise that an animal is a family member ... a subject to be agreed at the initial chat. Commission should be regarded in the same way as overtime in that 50% will be due to the IVA and you keep 50%. Again, some firms will try to calculate your income including commission -- which is a road to disaster, so avoid those.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

plasticdaft

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Post by plasticdaft » Sat May 21, 2016 9:58 am
A horse is an expensive family member and I'm sure you would not just give it up (I'm married to a horsey lady so know the impacts of horse ownership).
An open and honest discussion about costs with a few iva firms woukd be best. Try to work out any ways of reducing the costs involved with the horse and see what iva firms suggest.

You really shouldnt go into an iva unless you absolutely have to be you should also be realistic sbout whether you could pay off your debts without some sort of help.

I juggled crefit cards for several years thinking it was working when really matters were getting worse.

Good luck.

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

Shining

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Post by Shining » Sat May 21, 2016 2:23 pm
I totally understand how you feel about your horse and dog(s) - I have four dogs and they're my world.

Do talk to several companies and be honest and upfront, if you decide to proceed there will then be no surprises. All the best.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

kallis3

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Post by kallis3 » Sat May 21, 2016 2:30 pm
I do know that when I first started on here there was a poster who had a horse and had to fight tooth and nail to keep the horse but she was allowed to do so.

Silly thing to remember but I think the horses name was Major!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

lifenoteasy

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Post by lifenoteasy » Sat May 21, 2016 8:20 pm
Reclaim any potential ppi first and then seen what you decide.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
 
 

MerlinL14

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Post by MerlinL14 » Sun May 22, 2016 10:52 am
I can't add anything to the advise about who, when or even if you decide to get an IVA. It has pretty much been covered by our learned members above.
But from my personal experience; It will be a struggle to have any sort of social life for the 5 years, you will be made by circumstance to count every penny to justify 'stuff' you buy that isn't absolutely necessary. You will wear the same wardrobe of clothes for much longer, fashion seasons will cease to exist in your life.
You will feel elation that none of the letters dropping through your door are bills or final notices to pay. Everything you accumulate over the 5 years will be yours, not on credit or payment plan, yours.
You will realise that there are places to shop for a bargain that you never noticed or considered before the IVA.
The day your final payment leaves your bank account will be as good a feeling as seeing your first born come into this world (OK almost as good).
You will find that pre IVA you were a dork with money, you had no clue about how to budget properly, borrowing more money to pay for what you had already spent is NOT budgeting. Post IVA you will be the most frugal shopper and will make 'stuff' last longer or repair it. You wont give a diddly squat that the Jones' have just got a new widget, because you will be smug in the fact of knowing they are 1 pay packet from being in the same boat you were 5 years ago as it is a given it was bought with credit.
Post completion certificate and your credit rating being whistle clean;
You will have a high street bank account, that is always in the black, you will have a savings account that is growing month on month, you will have a credit card, a card that you use knowing you can and do pay back in full each pay packet, after all you only NEED it to continue to have a better than average credit score.

An IVA isn't a bed of roses, it isn't a quick fix, it is a lesson in how you were always supposed to manage your income and expenditure.
Mine was trouble free, I had little to complain about and nothing to say my IP or his staff didn't treat me with respect and completely fairly. Not all IVA companies are the same, some treat the 'contract' wording a little too loosely, a little reading on this forum will almost scare you off the prospect.
Whatever your decision, I wish you the best for your future.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
 
 

watzki

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Post by watzki » Sun May 22, 2016 12:20 pm
Fantastic post merlini I echo every word
Today 1st of December 2016 the vultures finally flew away
 
 

Michelled0422

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Post by Michelled0422 » Sun May 22, 2016 5:34 pm
I agree with Merlin, though my IVA is for 7 years and I am 5 years and 2 months in. But irrespective of that, I am proud that I am paying back my debts, I am proud that I haven't borrowed a penny off anyone in that time, I am proud that I took responsibility and control of my debt and when I eventually pay my last payment, I am confident that I will have learnt how to deal with money better even during my darkest days which is why I got into debt in the first place. Good luck
 
 

Lisa Thomas

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Post by Lisa Thomas » Mon May 23, 2016 10:56 am
Do you know how much the horse is worth? IN an IVA you can ask creditors to keep it, and the expenditure it costs you however in Bankruptcy you could be at risk of losing it but only if it has a material value.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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