Hi I was in the process of setting up an IVA

[robbie1981]

Hi

I was in the process of setting up an IVA but to double check this was the right option for me I called National Debt Line today.

National Debt Line informed me that I cannot get an IVA due to the fact that I am only a temporary contract with work which finishes in July this year. When I mentioned this to my IVA company last week they said this would be no problem as you can reduce your IVA payments when this happens but National Debt Line are adament this is not the case and the IVA company is breaking procedure by advising me that this was possible.

I am just emailing you to see what the the "real" answer is

Many Thanks

[kallis3]

My only concern would be - how would you fund your payments once your contract is finished if you can't get another job?

You can get a reduction on your payments if you are out of work, but unless you get further employment, your IVA would be doomed to fail.

Who is your IP?

[robbie1981]

Hi Jan

Many thanks for your reply, it is much appreciated.

You have basically said the same as National Debtline (although the advise was adament a reduction is not possible or she may have meant to imply that its possible but not if you are out of work). My IP was going to be set up with Payplan, they are just waiting for my signatures to be posted back to them. Thankfully I never done that.

I am worried they will hassle me now and say things like "Job seeker's allowance can be an income so you can repay using that if we reduce your payments"

Rob

[kallis3]

Jobseekers allowance probably could be used, but you have to live as well so not a lot could go across to the IVA.

There have been a couple of negative posts about Payplan recently. I'm with them and have had no problems.

One of their staff posts on here, so if she is looking in at all, she might be able to shed some light on the matter.

[robbie1981]

Exactly, the bulk of that money would be to pay rent to my parents.

I have heard both positive and negative about payplan, their staff are very helpful and professional but am just annoyed that I nearly applied for an IVA when they knew this was not possible due to my circumstances.

[MelanieGiles]

Well actually neither of them are right and neither of them are wrong - because in law you can propose an IVA of your work contract is due to run out.

Clearly, from a commercial point of view, however - there would be no point in entering into a structured repayment plan with creditors if you could forsee from the outset difficulties in maintaining your payments.

I have to say I side more with National Debtline rather than Payplan, based on the facts you have presented - and perhaps a short-term DMP is a better option until you find a more regular source of work.

[robbie1981]

Thanks for your input Melanie

A DMP was discussed by both IP company and Debtline but they both agreed its not worth it due to the fact creditors can charge interest at any time and the ;ength it would take compared to an IVA and Bankruptcy.

I just want a fresh start. A DMP would take roughly 8 years to clear (this is providing I am still in employment throughout as I would not be able to afford the amount that was proposed if I was unemployed). Bankruptcy wipes debt free and is only 6 years.


Wish I found this board a few weeks back people are so helpful here, thanks guys!

[MelanieGiles]

Bankruptcy is definately an option you ought to consider if you have no assets which would be affected by it, or are in employment which would also not be affected.

[David Mond]

My advice is to discuss with another firm of IP's your options as it could be an IVa or DMP and see whether interest can be frozen if a DMP is chosen. What is the probability of a new job/contract when your existing one runs out? All these factors need to be discussed so view www.iva.com and see reviews on other IP's the advice is free and I will guarrantee that they will give you the appropriate advice.

[kallis3]

Actually Robbie, you are usually discharged from bankruptcy in 12 months or less, and if you have an Income Payment Order then you will pay into it for 3 years.

It will remain on your credit file for 6 years though, as will an IVA.

[Lawbel5]

Hi
I am new to the site nad hope I am in the right area!
I am 48k in debt in my name and husband is 4850,
jointly 6500 this is unsecured debt. We have a morgage and 2nd charge, we are in a neg equity situation. I meet with IP on Fri who CAB had recommended who advised us to start an IVA for me not my husband. They will charge £2-2500 for this.
Do you think this is the best way for us to go?

[robbie1981]

Regarding Melanie's post I do not have any assests and regarding David's post, I am covering someone who is on maternity leave, so likelihood of contract being extended is all depending if the lady returns.

Again I would rather a fresh start than to have a DMP set up. DMP would take 8 years (which was calculated by payplan). This is only depending if I am in employment as the amount for the DMP would be impossible to meet if I was unemployed and on benefits.

[kallis3]

Hi lawbel and welcome to the forum.

Your husband wouldn't have been recommended as he doesn't appear to have enough debt on his own. However, if you decide to do an IVA on your own, your husband would be chased for the whole of the joint debt, not just half of it.

I recommend that you speak to one or two more IP's. There are several who post on here who come recommended.

Visit either www.iva.com where you will find reviews of companies, or visit the expert link on the left hand side of the page where you will find contact details.

Robbie, I recommend that you do the same. However, if you want a clean start then I think bankruptcy could be the way forward for you.

Speak to a professional though before making any decisions.

[MelanieGiles]

I am not sure that the advice to your husband not to do an IVA is necessarily correct, given that you probably have been used to borroing money for joint purposes and pooling your resources to repay the debts.

Your husband could offer a DMP to his creditors, but depending upon the timescale to repay that it might be better to reconsider joint and interlocking IVAs.

Were the fees charged relating just to the IPs proposed work as Nominee, or are they for doing the supervisory work as well, and I trust that you were told that these would be paid out of the contributions you pay over and not on an up front basis.

And just curious - who did the CAB refer you to?

[kallis3]

I thought if the debts were in seperate names then they were classed as seperate for the purposes of an IVA Melanie?

Hubby and I have seperate IVA's even though my credit card debts were also used by him as well, and vice versa.