I started the process of an IVA almost 4 months ago and I am at the stage of having my final conversation with Melanie this weekend.
It's been liberating not depending on credit any more and actually living within my means. It's like starting a new lease of life after struggling with debt for 12 years. I now have a bank account in credit after all standing orders are made each month.
However I am getting really close to my creditors meeting date in a few weeks and I am getting extremely nervous about the outcome.
Originally I was hoping for an monthly IVA as things were quite stable, however in the last few months my company has been bought out and my job is at risk. It's looking increasing likely that in months to come that my job will not be there.
I spoke to my parents who said they could arrange a loan for me which would offer approx 22p to £ of debt that I have. I know this is quite low but I am really worried that in a few months I'd have no job and would therefore have trouble with a monthly IVA. Also I think I'd rather owe my parents money than creditors as this way I would not face the risk of being made bankrupt! The problem is that I have no equity in my property and as far as I can calculate creditors would get nothing by doing this...but am I missing anything!?
Basically I thought I'd ask anybody who has been in the same boat whether the offer my parents are proposing would likely be accepted or whether they would just turn it down.
Any feedback is welcome as my mind is racing and I can't seem to reach a logical conclusion in my head.
Sorry to hear that job could be at risk, I hope it doesn't come to that.
A full and final might be acceptable, but you need to run that by Mel.
As to your property even though it is in negative equity, you might still have an equity release clause as who knows what is going to happen in five years. If you went bankrupt then your parents could buy out the beneficial interest for £1 plus £211 which would take the house out of the equation as long as you carried on with your secured payments.
Have a good chat with Mel as she obviously knows all the ins and outs of your case.
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
I am sure that the offer from your parents will be accepted - and there is little option for creditors outside of that especially given your work situation.
We will, however, talk through all options tomorrow so that you are sure that you are doing the right thing.
Thank you both for replying, I think has the time draws closer to a resolution I am getting more and more nervous.
I am sure Mel will advise the best course of action, for me my main priority is to keep a roof over my family's head and hope that my creditors accept the offer.
It's always reassuring to know that you can always get a positive response from you guys on here.
Well finally I have the elusive creditors meeting date set for 20th July at 11am.
Part of me is excited but the other part (bigger part I think!) is anxious if they say no and drive me down the bankruptcy route.
I've finally learned the way of spending within my limits, which is something I haven't done for 12 years. I had made 12 years of monthly payments to creditors and when I stopped making those payments in February I felt so guilty and ashamed. However I began facing my own demons about debt and wanting to make the right decision for me and my family but also trying to show some gesture of honour by paying back what I could afford.
Although, my job is still at risk I hope my new chapter begins on 20th July with my F&F IVA being accepted.
I'll let you all now how it goes, for the time being the countdown as anxiously begun.
