My debts and my income are so low I do feel I shouldn't be in an IVA.

[Miss guided]

Okay here goes,

I'm 25
Live with parents
No assets
Credit cards and overdrafts amount of £7k.

I entered into an iva August 15. These were student overdrafts with no fees and no action was being taken against me with these just to point that out. I was using my student loans to pay the monthly amounts on my cards. I graduated June 15 my income dramatically decreased. I was working part time on a 7 hour pw contract on min wage. I could do up to 20 hours a week but this was variable. I lost my job in January 16 because I left for another job which fell through. I have not paid into my iva since then. not heard anything from my ip since, only that my review is coming up.I have a few casual jobs but nothing sustainable. 4-8 pw. Some months there is no work. I do feel that I was mis sold the iva. My debts were so low and my income was so low. I have contacted the national debt line and they agreed with me. I have dyslexia which made it awfully difficult to understand my agreement and the information given to me over the phone. I thought the iva seemed like a good solution to my problem. I just went along with it without really understanding what it was or how serious. I feel I was coherced with the prospect some of my debt would be written off at the end. I was never encouraged to contact my creditors individually and try and make an agreement. I wish someone had told me to do that before jumping the gun into an iva. My family is selling the home and will be moving abroad in around 3 months time. I really have no choice but to go with them as I am dependant on them for shelter. I have no job lined up for this move and cant offer any payments to the iva for the foreseeable future. Bankruptcy seems like a extreme action for me or my ip to take with my debts being so low. Should I complain about my iva and see what the outcome from that is? Go bankrupt? Ask them to accept a low settlement? I'm so confused and alone. Please help! Miss Guided

[MrsR]

Have you spoken to your IP directly to find a solution to your problem?

I would focus on the employment/income issue first.

The citizens advice can offer you support in helping you claim benefits while you are not in sustainable employment, but in the meantime check out entitledto, as this can give you a rough idea of any support you could be eligible for.

Have you contacted your local job centre for support in obtaining employment? They may not always be great ( I've heard differing stories over the years!), but they can help with CV writing or interview preparation.
You could also register with a few employment agencies and see what thy have available. You may not be able to get your dream job right now, but at least some stable employment would be a start.

With regards to miss-selling the IVA, most people start the journey with a discussion with their chosen IVA company to look at differing options, and give you clear information as to what the pros and cons are, prior to taking he next steps, so it could be hard to state it was missold.

To end your IVA early, you could offer them a full and final payment to finish your IVA. This is your Normal monthly payment times the number of months remaining to complete. You have to find someone who could do this for you, but could be a solution to your problem if the employment issue is ongoing.

[Shining]

Hi and welcome, 7k is a low amount for an IVA, I agree and with you not working etc, I wonder if bankruptcy is a better option to clear your debts and then you'll be moving abroad with no debts and hopefully a clear way to move forward.

[Foggy]

With no assets and no income a DRO might be better than full blown bankruptcy -- speak to the debt advisor at your local CAB.

I agree that the IVA was a big sledgehammer for such a small nut, but cannot comment on mis-selling, as there are many things of which we are not aware.

However ... to the present .... the chances are, since you haven't paid anything since the start of the year, that the IVA has failed --unless you have agreed a payment break with your IP.

Speak to CAB.

[Lisa Thomas]

This is the problem of some bigger firms/IVA factories not actually meeting the debtor in person.

It is a very small debt for an IVA however you are bound by it now and suggest you keep it going if you can. You might need a payment break whilst you get back on your feet or perhaps a third party might be willing to offer to gift you a lump sum to make a settlement offer and bring it to an early end?

[kallis3]

I agree with Foggy that a DRO might be a good idea - debts will be written off in 12 months, it will cost you just £90 and you will then be debt free.

CAB will be able to help you with this.

Check the Insolvency Register to see if you are still showing on there.

[Lisa Thomas]

I'm not sure that student loans can be written off in a DRO.

[kallis3]

I hadn't spotted the student loans and I assume that they are the same as IVA and BR in that they cannot be included.

However, unless you are earning a certain amount you don't have to pay anything back and, (I stand to corrected here), after you reach a certain age don't they get written off if you've not managed to pay them?

[Lisa Thomas]

I don't know anything about the repayment detail of student loans but have found this which might come in useful:

http://www.studentloanrepayment.co.uk/p ... ema=PORTAL

[size5]

From the Insolvency Service DRO Intermediary Guidance:

• Student loans - cannot be included under a DRO. They remain the responsibility of the debtor to repay within the terms of the loan agreement. Student Grants and overpayment of Student Grants are however qualifying debts for the purposes of a DRO application

Regards.