Hi im starting the beginnings of hopefully setting up an iva, its with a company called moneyplus group, its so daunting that there is so many iva companys and im really worried about which one to choose.
ive got to the point that everydays a worry for me now, scared of the future and what it may bring, the most worry is for my kids and letting them down.
Also is it true that you are left with nothing after paying out the monthly iva and the essentials so the odd day out with the kids wont happen for the next 5 years?
Hi. First of all have a chat to a few companies to see who you feel comfortable with. A look around the forum will give clues as to who might be a good firm.
You are left with very little ( a few quid) after paying everything out -- so it is ESSENTIAL that you include all outgoings in your I&E. Don't forget things like haircuts, school meals, etc.
Most of us get into a way of budgeting which allows for small treats every now and again. And you get to keep half of overtime and pay rises (if you get them).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Some companies seem to be harder on the income and expenditure than others and even take surpluses from family members who are not involved in the debts at all.
Get more than one opinion as the difference could be thousands of pounds over the term of the IVA.
The problem with the I&E allowances are that they are very generic and have barely changed over the last 6 years (to my knowledge). It is a long hard journey and there is no money for any extras such as major home/car repairs, holidays etc.
It is not an easy ride and if I had my time again I would have found another way out of my debts. IVA's are very one sided, the creditors for obvious reasons.
As others say, check the allowances and budget carefully, be realistic and think if you can really live on the money allowed. Also be aware of all sorts of little extra clauses that can mean the IVA journey goes on well past the 5 year mark, particularly if you have equity in your home.
Choose an IP who you feel you can work with, they are not on your side so don't expect them to be your friend though!
As Bob and Gill has posted, if you are a home owner you need to be very clear minded and fully understand the equity release clause implemented to any IVA you sign up to, as you may be required to take out a lengthy secured loan to release available house equity into your IVA in the final six months of the IVA.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
Once you have submitted an I&E and they have decided on your disposable income - make very sure that you check the figures that they have allowed - i noticed that my company reduced lots of my figures for things that i could not reduce like council tax - if they reduce those kind of things then you are put in a unfair position from the start as you are trying to take money from other parts of your budget to supplement the essentials.
You will find yourself being very creative though and looking for all the places that are free days out and taking picnics with you - it shouldn't stop you still enjoying quality time with your kids - they will appreciate your time more than how much you spend on them.
Good luck!
IVA started Jan 2012
Last payment made June 2014 @100p
Completion certificate received Sept 2014
thankyou all for the replys, i dont own a home, just living in a housing association home with my mum. its more the unknown and not knowing what to expect. Untill ive looked through and sent signed papers back but will make sure i have a good read and will make sure the budgets that have been set are reasonable.
I feel the pressure more about going into an iva then i did trying to make my payments each month
Have a good dig around previous posts on the forum.
Apart from having a firm that will help you reach a manageable figure that you can pay, it's also vitally important that you have access to the IP ( insolvency practitioner ) when you need to.
Some of the bigger firms will simply not allow you to speak to the IP leaving you to deal with a good / poor caseworker when making life changing decisions around your financial future.
Do not feel pressurised and take your time. Do a budget checker with more than one firm as five years can be a long time with a tight budget. Affordability is the single most important thing in an IVA and how you spend your own money is your business. You have allowances for various things which you can spend as you see fit.
Yes I would make sure you are happy with all your allowances. I am with one of the larger firms and we have never been allowed to increase our housing keeping although costs have gone up a lot in the last 5 years as we all Know. Even although I earned extra and have increased my payments this has not been increased in the life of my IVA.
I would certainly look at the smaller companies that post on here as they do appear to be more understanding than the large ones. I have never spoken to my IP and would be allowed to.
Sadly I sorted my IVA out before I found this forum.
Take time now to ensure you are happy with your chosen company as they need to be your best friends for the duration if your iva .... if in doubt speak to another firm ....
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I had the same worries and I must say you are really in the right place here on this forum to make the choice.
I am with PJG Recovery and my Insolvency Practitioner is Melanie Giles.
I opted for them because when I studied this forum other people had said positive things about them and Melanie herself is very active here posting frequently and obviously caring about her clients as well as her company's reputation.
Also Melanie is part of the initial process and spoke with me directly before it was all set up. I've been treated in a respectful and friendly way the whole time and I'm in my second year.
