Just want some advice

[neveragain67]

Hi everyone

After years of struggling with debt we've finally reached the end of the road. Have been reading these boards and am seriously considering an IVA but am too embarassed to speak to anyone about it as I will just cry [:(].

Can anyone tell me how they decide how much you have to pay each month - will we actually be any better off? I don't care about my credit rating being affected as I don't ever see me wanting credit again, but I'm just concerned that we still won't have enough money to live on, and won't be able to afford little treats for the kids etc. Also, as all our payments are up to date (they won't be next month as things have just got so bad) will the creditors not vote in favour of an IVA as up until now we have been managing?

I so want to avoid BR as the kids would be devastated to leave our house and I don't think I could live with myself for inflicting that on them.

Any advice greatfully received.

Thanks

[Struzzo39]

HI and welcome to the forum. We're still quite new to all this. But I have to admit for us so far its the best thing we have ever done. I just wish we had done this alot sooner. All our payments were up to date pre IVA but all creditors voted for us with minor modifications at the meeting. Well done you've done one of the worst things and admited that there is a problem. I too felt the way you do and to this day bar the forum, husband and payplan no-one knows of our situation. The best next thing is have a look on this site at companies that offer IVA's and see which is the best for you. They will go through a budget with you alonside other things and whatever disposable income you have left will go into your IVA. We still manage to do the occasional treat and the kids still have their clubs etc and we are also managing a holiday later this year saving from our allowances. Keep posting on here I found this forum a lifeline even in the real dark days. Good luck for the future and to a debt free 2015!!!! x

[kallis3]

Hi, and welcome to the forum.

Don't worry about speaking to someone. We've all been there and there is nothing to be embarrassed about. Whoever you speak to will be totally sympathetic and give you free advice.

You will have allowances for your normal spending and can afford treats if you manage to save something from them. I'm afraid that things like Christmas and birthdays will have to be saved up for.

As to your creditors, whether you pay or not will make no difference to the voting.

I recommend that you speak to some experts. Visit www.iva.com for a list of companies and reviews. Give one or two a ring for some free advice.

[Shining]

Hi there and welcome to the forum.

I cried when I first spoke to my IP for the first time as I was so relieved to hear she was accepting my case.

Take a look at www.iva.com for a list of companies and some reviews of these, always talk to 2 or 3 to get case specific impartial advice.

Again I was like you and up until the point of contacting an IVA company our payments were all up to date and my IVA was accepted without a problem.

All your disposable income will be paid into an IVA but you will have allowances for other things i.e food, toiletries, clothing, etc., A good company will explain all this to you in great detail.

You ask any questions you want on the forum and we will try and help.

We do have professional posters and they all come highly recommended too so if you want to contact any of them they can be found via the experts link. x

[neveragain67]

Thanks for your replies. Can you tell me whether they take child benefit, tax credits and pension payments into account when working out your incomings?

[kallis3]

Hi,

Yes they do take these into consideration.

[Michael Peoples]

All income is taken into consideration in an IVA although the rules are different in bankruptcy. You may not lose the house in bankruptcy and an IVA normally protects it too so you should seek some advice.

I would suggest that you open a new bank account as quicly as possible so you can protect your wages and benefits and also your credit file is still probably fine so it would be easier now. Irrespaective of what option you choose it is vital to put your family first and then decide what is best.

[maxdebt]

Hello there. I too was up to date with my payments but I was robbing Peter to pay Paul!! I remember the day very well when I realized that there was no one left to rob. All my cards were maxed out, and I did not have enough money to meet my minimum payments. I felt a failure (my wife had no true idea of the scale of our debt) I sat with my head in my hands, in a chair, along a pedestrian precinct in absolute despair. That night I surfed the net and found this forum. I got a number to call and spoke to someone called Tina (she knows who she is!). Best phone call of my life. There were times during the call when I could not speak but Tina was very patient with me (the phone call lasted for 1 hour and 10 minutes!) 6 weeks later my IVA was approved

My children (4 of them!) continue to get treats as I have learned the martial art of the frugal! If need be I can feed all 6 of us a delicious nutritious meal for £4 ( I do a particularly mean slow cooker chilli) I’ll give you the recipe if you want.

That was nearly 3 years ago. The last 3 years have been the best of my life. Please make that call and I wish you all the best

B

[jen46]

Hi there,
I cried when i made that initial phone call. We've now completed our IVA. You will be left enough money to live on. You'll be surprised at what you can buy with the money you have!! As Maxdet says - make that call

[kallis3]

Visit the link that Lesley posted, it is hard to make the initial call, but it just might be the best thing you have ever done!

[Pandy]

maxdebt
reading your post made me so emotional,[:(] I never got to that stage but I have seen many people sat on benches in shopping centres looking really glum and I never thought about what the cause could be, we all get so wrapped up in our own little worlds struggling to rob Peter to pay Paul we forget others are probably doing the same thing.
Our spiral into debt was much quicker we were fine just able to keep afloat until hubby was made redundant, and was unable to get another job. We struggled for 9 months before admitting defeat.I actually got a DMP first as soon as I saw we could not make payments 2 months ahead. So our creditors didn't have any idea until they were hit with the paperwork, turned it into a IVA in April this year.
I want that recipe, I love my slow cooker [:D]

neveragain67
Please make the call, everyone gets tearful at the stage you are admitting to a stranger how bad things are. You are not alone and this forum is a fantastic support. We are all here to smile with, rant at, and to let you know you are not alone.

[Hammie1]

Hi neveragin67

Like many of the other posters on here, we felt exactly like you. You just keep thinking yep we will manage, althoguh you know at some point it will need to stop. I got really ill worrying over it as I dealing with all of our finances and did not really want to admit to my husband that we were struggling, we are now sharing everything and he has been brilliant!!! Like you to, we have children, and they are still young, and I am worried how we are going to cope when we have to keep saying no to things, but I would rather do this and get our IVA accepted then keep getting into more debt.

Our process so far has been running for approximatley 5 weeks, and our payments were also up to date, until now, a fresh month. I am a member of credit experian, and so far have only got one late payment recorded. I do advise if you do decide to go ahead, get your bank account changed asap, if they are one of your creditors, because if not, they might freeze your money. Co-operative basic account is being recommended on here, and we got accepted with no probs.

This site is brilliant. Let us know how you get on.

Sam x

[L-E-E]

Hi Neveragain,

An IVA is designed to your specific circumstances with regards to what you pay into it. An in depth breakdown of all income and outgoings (with allowances for Food, Petrol, contact lenses etc) will be conducted to ensure you only pay what you can afford to after essential living costs. If at anytime your circumstance changes(for better or worse) by communicating these changes with your I.P. they will work with you to ensure you are still able to live your life and contribute to the IVA.

Lee

[bigtrouble]

Hi NeverAgain,

Looks like your story has struck a chord with a lot of us on here! Firstly, I can completely empathize with where you're at right now - we are a few weeks ahead of you in the process and have just received a proposal today. We only missed our first payment 2 weeks ago but on paper its clear we couldn't have continued!

I never thought I would be in this situation but here I am. The initial conversations with the IP firm were all conducted by my husband as I thought I would find it far too hard to discuss the situation due to feelings of shame and embarrassment. The first time a company actually contacted me following an online enquiry offering advice on an IVA I actually ended it quite abruptly as I couldn't handle it. However, the past few weeks I have come to terms with it and am now seeing this as a very positive step forward for us and our children. No more using credit cards and loans and getting deeper into debt and the chance to start afresh if we are approved.

The firm we are using have been very professional and understanding and not once have I been made to feel ashamed or inadequate.

Hopefully you will already have picked up the phone and taken the first steps, if not, I think you should go for it

Best of luck

[Jodara]

Hi, this is exactly what happened to us. I sort of knew we couldn't carry on but didn't want to admit it. We were up to date with payments but had no money to buy food etc. I too worried that it would go against us but now I think maybe it shows our committment to wanting to pay. I felt like a failure and was worried I had ruined everything for my family (3 young children)but since our IVA was approved my husband and I feel that we have been given a lifeline and we are very grateful.

You are not alone and I have found that this forum is great! It has helped me to realise that we are not alone and there is support from others in a similar situation.

Good luck!