I owe 6000 and I've been advised an iva is better for me?
I have a 100 pounds a month spare cash and been told to pay 80 a month?or should I go bankrupt so I don't have an iva for 5 years?
An iva is a huge commitment and for £6000, Its quite a small amount of debt to warrant one being take out, so I would suggest you speak to a few other specialists before committing to the IVA.
Have you considered a debt relief order or a dmp?
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!!
Welcome to the forum. You need to take further advice as debt of £6k is relatively low for an IVA. There are other options such as Debt Relief Order or an informal debt management plan or bankruptcy.
Professional advice now will help you in the long run. An appointment with the CAB maybe a good starting point.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
If you have had ppi try reclaiming that first using it to pay the debt.
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.
I agree with the others -- and IVA is a rather large hammer for a small nut !
If there are only one or two creditors you could negotiate with them yourself to set up a DMP, otherwise go to one of the charity firms (they don't charge fees on DMPs). CAB would be a good place to have a word initially.
Might I ask who advised an IVA ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Also there have been a few cases on the board recently where people entered an IVA only to find that a few months/couple of years down the line their financial situation had increased dramatically.
An IVA will impact on your financial history for at least the next 7-10 years.
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.
For that level of debt, and that level of disposable income, then a DRO might be appropriate, but there are other factors, e.g. property, motor vehicles etc.
A DMP could work, but only for consumer debts, priority debts, for example Council Tax arrears, cannot be dealt with.
If for any reason a DRO doesn't suit, then a full blown Bankruptcy may well be unsuitable also.
So, in limited circumstances, again a prime example may be Council Tax arrears, bailiffs etc, an IVA may actually be a good bet. I would echo the sentiment to get a second or third opinion, and do make sure that at least one of those is to a debt charity.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Good advice from other posters
Speak to several other companies, including StepChange, and weigh up all the options discussed carefully before going ahead
Much will depend on your own circumstances and type of debts
If its only 6000 then surely a bank loan to pay off everything is a better option? Most high street banks offer low interest rates now and you should be able to get a loan for under 100 per month.
Ive just finished my IVA a couple of months ago. I owed 42000 before i entered into it and was paying 1100 per month in loans / cards etc
I think an IVA is a bit sledgehammer/nut type situation - although I don't know the your overall circumstances to give full advice I think you should explore the other options first as the others suggest. If you only have a handful of creditors and can get interest frozen you could pay debt off in full without an IVA and possibly without a DMP either. F&F settlements would be a good way to shed a few debts - speak to your creditors.
