www.iva.co.uk

Hi,

I am here for advice on how to set up an IVA.

It will be a joint IVA with my husband and our main creditor is Northern Rock. I think about 50% of our debt is with them but I was wondering if their stance on IVA's has now changed.

We keep being told that bankruptcy is the best solution for us but I really do want to avoid this option just because I think that we should pay back some of the debt we actually own as it is our responsibility to do so and partly due to the stigma associated with BR.

I would like to know if BR and IVA affect your credit rating down the line differently as in say 5-10 years time we want to buy a house again?

Also how likely will it be that our proposal is accepted? We do not have any assets, savings, own home ect and own 2 scabby cars!

We are in rented accomodation but are looking to move to something a little smaller and cheaper to free up some money each month to pay towards and IVA.

We are currently in a debt management plan with PAYPALN who are utter ****e. They never pay our creditors on time and we keep getting nasty letters all the time. Our DMP is estimated to take over 20 years to pay and that is before all charges and interest!!

I just want to see some light at the end of the tunnel.!

Can anyone reccomend a good IP or company to speak to about setting up an IVA?

Many thanks,

Cathy x[:D]

Hi Cathy and welcome.

Firstly, let me say that we are with Payplan with our IVA and have had no problems at all with them.

It would be a help if you could post details about your debts and income? One of the technical experts could then advise.

As regards credit ratings, regardless of whether or not you do BR or IVA, your ratings will be shot for 6 years from the date of IVA or BR.

No one can say whether or not your proposal will be accepted. Each one is different.

BR is now not so much of a stigma as it used to be, and it may wll be that it is the best option for you.

As to IP's, one of the experts who posts on here is Melanie Giles who is highly recommended. I would give her a call and she will explain all your options.

Hi Cathy

I am not allowed to make recommendations for IP firms, so why not have a look at the comparison website iva.com to see reviews on all firms by way of a comparison.

I personally find Northern Rock very fair and commercial, providing you put the very best proposals in front of them to review. Do you have a Together loan with them, or is the debt just a normal unsecured loan or loans? I ask, because different departments deal with those debts, and it helps to understand their criteria a little.

If your DMP is going to take over 20 years to repay, then an IVA would at first glance appear to be a better option all round, and I am suprised this was not suggested to you by your DMP company.

Your credit rating ought to be restored six years after the IVA has concluded - and any future lending will be entirely at the discretion of the lenders concerned. Many of my clients have successfully completed IVAs after five years and gone on to get high street mortgage rates in time, so if you are taking a long term view you will eventually get back to that position.

Hi bluecathy.

The choice of IP is probably the most important decision you will make over the next 5 years, it will have a huge impact upon your sanity and the liklihood of success in the IVA.

You can spend hours looking at IVA.com or scouring the market.

Alternatively you can give Melanie a call as you will struggle to find anyone better.

good luck & make the call for a friendly and helpful chat. You will feel so much better afterwards.

Hi

Thanks for your replies.

I will definately be giving Melanie a call when we have moved to a cheaper rented house and we can afford IVA repayments.

Just 6 months left of our tennancy! Seems like a lifetime but I am begginning to feel a little more possitive:-)

would recommend you speak well before you move.

It takes a while to set up an IVA and there is no reason why preparations are not being made in the background rather than waste 2 - 3 months.