About to undertake a voluntary repossession - We have been told to enter into an IVA now - But we do not know the shortfall figure (geuss around 85,000) - Will this be added into the IVA plan, and if so - How will the payments be affected
As soon as the house is repossessed, then I think the mortgage becomes an unsecured loan which will go across to the IVA. Not 100% on that and one of the experts will be along later to advise.
What other unsecured debts do you have?
Have you actually spoken to anyone about an IVA yet? I recommend that you visit www.iva.com for a list of companies and reviews. Give one or two a ring and you will receive free and impartial advice as to all the options open to you and the best way forward for your circumstances.
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
A serious question - If your disposable income goes into the IVA - How are you meant to enjoy life really? What if the car goes wrong, or you need to pay for something real urgent? Curious how others here cope for five years - a long time!
You do get allowances for such things as car maintainance, you can have a Sky subscription, a small social allowance. You can always save money from any of your other allowances as well.
Don't forget that if you work any overtime then you get to keep 50% of that to use however you please.
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
Thanks for the information - I am so scared that we will end up destitute worrying about those unforseen bills and how to live really... It seems that you have got a handle on it for sure, which is great - I guess as I (we) are only just embarking on our journey with this mess, it seems a monstrous task to handle - You seem to be very positive jan which is great - I hope that we will look back at this in a year's time and breathe easy... Curious how others felt at the start point of their journey?
It is scary at the beginning, but once you find sites like this and realise that you are not the only one in this position and you can get all your questions answered and no end of support, then it's not quite so bad.
I actually enjoy the challenge of budgeting and I no longer worry about how I'm going to pay for it. However, we do still enjoy life. Hubby went out last night for a game of snooker with daughter's boyfriend and they had a couple of pints.
You just have to pull your belt in a little!
I doubt I would have been this positive if I hadn't stumbled across the forum.
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
Could you tell me - We want to pay as little as we can to the IVA (obviously) - We have listed all essentials, what else did you add to reduce the IVA payment?
Hi,will dampen your spirit with this reply. The idea of an iva is to pay as much as is affordable once all your living expenses etc have been taken into account. If your I&E is done properly you will be left with an affordable amount to live on. It can and will be hard sometimes but the end result should make it all worthwhile.
The spirit of being fortunate enought to get an IVA accepted by creditors, and hence have a substantial amount of debt written off, is to pay as much as you can afford not as as little as you can! An insolvency practitioner can help you work out a budget that suits your circumstances and leaves you with an element of contingency money which should be saved to cover unforseen events.
I have nearly completed 3 years. Like you I was really scared at the beginning....I knew I had a real probelm probably a couple of years before I actually did something about it. I was living off my credit cards and paying minimum payments each month out of my income...minimum payments then exceeded my income and it was robbing Peter to Paul situation.
I have never regretted getting an IVA....when my creditors agreed to it...the relief was immense...no more phone calls from creditors and a least I knew when I got paid from work each month I could cover my living expenses with a little bit extra and not having to worry about getting further in debt.
Has it been easy?...well it can be a bit of a bumpy journey especially when you get hit with a sudden bill ie car problems (see my post yesterday). Most of the time you can work through these situations. With me because I am on my own....I have not told no one about my IVA, which is also stressful at times but that is my choice I guess. I just look forward to 2 years time when I will completely be debt free and have lots of extra money a month. One thing for sure, it has taught me a lesson of never getting myself into a situation like this again.
x
Last edited by Busybee on Sun Sep 06, 2009 10:57 am, edited 1 time in total.
Hi Zim zim, yes an affordable amount to live on sure - get that - If circumstance changes when would you need to advise the IP? Also we are considering using Debt Free Direct and have their pack - has anyone else used them at all?
They have calculated that we have £368 that we can put to the IVA - My partner's take home is 1200, but does get expenses for hotel bills regularly when working away from home - Surely expenses are not calculated as an income, as they have to be paid out each month, right?
No those sort of expenses are not included. With work I travel around alot and often stay over in hotels...what I get for doing that is for me to keep as most (if not all) I have had to pay out for in the first place ie hotel bill, meals petrol etc.
Last edited by Busybee on Sun Sep 06, 2009 11:08 am, edited 1 time in total.
There are several posters on here who use DFD and say that they are ok.
You could ring one or two other companies. Visit www.iva.com for a list of companies and reviews and give one or two a ring. The advice will be free and impartial.
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
