An IVA will take into account the total amount of your debts and your income and work out a figure for you to affordably pay back as much of your debts as you can.
Secured debts (such as a mortgage) will treated separately as will utilities etc.
I suggest that you speak to one or two companies for some advice Andy Davie/Vincent Bond - details under the ask experts a question - can be phoned for some free advice.
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
Whether an IVA is an option for you is dependent upon a number of things and you really need to have a chat with a few firms to compare advice and to see who you gel with. Different firms operate differently withing the same broad framework.
Basically, as Kallis says, you agree a repayment rate (your disposable income) and contract to pay this over 5 years (sometimes 6). These payments can increase if your income increases. At the end of the agreed term any of the original debt not paid is written off.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Whether or not it is suitable and/or viable for you will depend on your financial circumstances.
i.e what assets do you own, how much is your debt, how many creditors do you have, can you afford to make monthly contributions from your income and if so how much...
Happy for you to call me and chat through your position so I can tell you whether an IVA might be right for you.
Last edited by Lisa Thomas on Wed Jul 27, 2016 9:39 am, edited 1 time in total.
Hi,
Do you have children? own/mortgage your own home?
Are you in a stable relationship? or single? how much do you owe?
ALL these things matter as you will be signing up for a minimum 5 year term.
Taking an IVA will test you and your partner to the limit. Please take as much impartial advice as possible, speak to family and friends, find out ALL your options before you go down this road. Let me tell you as a veteran IVA slave, the "how much you can afford part" is not what you might think. Above all, don't ask advice from IP practitioners until you know how the game is played.
Good advice oldandbusted the hook of the companies of the "a monthly affordable payment for five years and your debts are cleared at the end of the term" is so so wrong as an iva "slave" ourselves it is not a happy smiley time as the companies make out.
It is a long hard commitment your life is ruled by the iva,hardly any money for birthdays and Christmas no holidays,hardly any social life.
We found November and December very challenging,the annual I and E nerve wracking.
But now at the end grateful that I will soon be out of debt.
We had massive debts and looking back bankruptcy would have been a better option
Today 1st of December 2016 the vultures finally flew away
Hi Watzki,
I absolutely relate to your post. We have had 5 and a half years of living like "Monks". Like you Christmas and Birthdays have been hell.. 5 months to go, I am starting to see the light :)I agree with the Bankruptcy thought though! Ahh those cheery memories of the I and E..
I did (and still do) online surveys which always funded Christmas and Birthdays.
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
Sometimes Bankruptcy is the right option - it mainly depends on what assets are at risk of being lost. The key asset is always the equity in the property, which is at risk of being repossessed and sold in Bankruptcy.
However the contributions in Bankruptcy only last for up to 3 years so it can be much less onerous than some IVAs.
