excuse me if I am posting in the wrong place to introduce myself, but hello anyway. ( I did post this in the August 2007 postbag - not a particulary bright decision! This seems to be the right place though [:)])
What can any of you tell me about how the IVA works?
Can I have a joint one with my partner?
Will they come after any assets? (Like a motorbike if there is a family car too?)
Can it last less than 5 years?
We are currently facing 12 years of debt repayment, so getting out of this sooner would be marvellous.
I've copied mine across as well, so I'll delete your previous thread.
Hi Roara and welcome.
An IVA is a legally binding agreement with your creditors in which you pay back a percentage of your debts over a period of time, usually 5 years, at the end of that time, the remainng debt will be written off.
You usually have an interlocking IVA with a partner, although I think I have read of one or two joint ones on here.
If you own a house, it is usual to try and release equity from it during the 4th year to pay across to the IVA. If there is no equity then this would not apply. If you have a very expensive car, you would be expected to sell this and buy a cheaper one.
The usual period of time is 5 years, but sometimes, if you can gather together enough money to make a full and final offer to your creditors and it is accepted, then your IVA will finish sooner.
If your motorbike is your only form of transport, I can't see a problem with you keeping it
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
Basically an IVA is meant to take an holistic view of your financial position, so a bit more work needs to go into it than with a DMP. This is because at the end of whatever term is agreed the remaining debt will be written off so long as you comply with your obligations.
It is possible for you both to enter into IVAs which interlock the practical effect of which is to make them joint in operational terms.
Whether the family can retain both a bike and a car depends upon the facts. I have a couple of clients who have both and have good reason for this. If the bike is just a big boys toy like mine is then potentially it could be lost to the IVA but again it depends upon value.
To determine whether an IVA (or something else)is right for you you need to speak to an IP who can then advise you of the pros and cons of all the options available to you, so you can make an informed decision.
Ian
Last edited by ianmillington on Tue Oct 21, 2008 2:51 pm, edited 1 time in total.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Dodgy territory because you could potentially be asked about what happened to it and what you did with the money you got.
To get this into perspective, what bike is it, how much is it worth, and do you use it for commuting?
To answer your second point, you are to a significant degree anonymous on the forum, although I would never recommend saying too much - save it for your chosen advisor.
Last edited by ianmillington on Tue Oct 21, 2008 3:00 pm, edited 1 time in total.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
it's an 06 R1, about 6k and yes I use it for commuting. It's easier than a car for the distance I travel. We need the car cos we have 5 dependent kids between us.
I thought when I hit post I had made a big assumption! Hence the change!
I think you need to talk this through - I do see scope for both to be kept but it would need to be viewed in the overall deal. As I have said earlier I do have a couple of clients (single people) who have both a bike and car so if there are going to be a pair of IVAs your bargaining position is probably strengthened.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
ok... one car to pick up his two youngest who live with mum 50 miles away. The car is worth diddly squat. Two bikes.. one for him if he gets a job without transport, and one for me to commute. My eldest has left home, his eldest now drives, my second still hangs around at home but is 18, and my youngest at 15 needs me to transport him everywhere.
two kids to pick up, you can only take one as pillion.
How much digging can be done? I mean, can they deliberately go and search to see what vehicles you have registered? Or look for any other information? What about data protection?
