www.iva.co.uk

I am just about to enter into an IVA and am worried there is a sting in the tail. Is an IVA all good or are there any bad points about it?

There are good and bad points in evevrything.
In an IVA, all interest will be frozen, creditors can no longer take action against you and you agree to pay a monthly contribution in return, some of the debt can be written off.

Just dont agree to unrealistic payments, that is a recipie for failure.

Sorry..... bad points, you will have to live on a tight budget for the term of the IVA and if you are a home owner, you will be asked at some point during the term to release some of the equity in your property.
50% of any bonuses or overtime will have to be paid into the IVA and and windfalls would have to be handed over too.
Im sure other forum members will chip in with anything i have forgotten.

Best of luck xx

If you are unable to release any equity (and at the moment it is doubtful that any of us can!), you will probably be expected to remain in the IVA for a further 12 months.

If you do have any major expense during the term, you can usually take a payment holiday in order to sort it out.

You won't be able to take out any further credit without the permission of the IP and your credit rating will be shot for 6 years from the date of approval of the IVA.

On the plus side, you will have peace of mind, the creditors will ignore you and you will be paying back what you can afford of your debts.

At the end, you can walk away with your head held high and a clean sheet.

Kallis3: "If you are unable to release any equity (and at the moment it is doubtful that any of us can!), you will probably be expected to remain in the IVA for a further 12 months."

Is this (Unable to release equity) because of negative equity or (like me) I have the requested equity available, but can't get hold of it because the new remortgage payments would be way over the amount I'm paying in monthly payments? i.e. above all my disposable income. I'm in a Scottish Trust Deed - anyone any advise?

Don't know about a Trust Deed but in an IVA your mortgage payments should be no more than half of your IVA payments if you can release equity.

Thanks for the responses. I am not a homeowner right now and won't be for some time.

Hopefully all will be well and it will all go through without a hitch

I hope that too cw2000, good luck and please stay in touch with the forum.X

bigpete, it's a bit of both. A lot of people are in negative equity, myself, I'm not in negative equity, but no way will I be able to remortgage in year 4 due to mine and hubbys age.

cw2000, good luck with your application and let us know how you get on.

Hopefully you were given the appropriate advice for an IVA as the correct solution to your financial problems. Yes you have to live within a strict budget for the duration of your IVA but should there be any changes in your circumstances of a negative nature such as reduction in income or increased living costs you should contact your supervisor who will be able for example to propose a variation to your creditors to suit changed circumstances. In my experience if situation warrants it creditors will agree.the other forum advice mentioned are all good. Good luck.

I have to say the worry and sleepness nights still haunt me on the odd occasion that I recall back to before my IVA. I am well into my third year and the lack of credit and the challenge to ensure all my wages go far outway my life before my IVA was agreed. I love the challenge. Its brought me closer to my mum and dad they help out and my lovely sister who listens xx so I dont look at the negative.... just a thought I'm sat on my sofa here next to my dog and husband, it's tipping down outside, we are toasty warm just had a nice loaf of bread and soft cheese, enjoying a martini and lemonade (my hubby buys me a big bottle from tesco that last me a month) I get the cloudy lemonade from aldi along with the ice...I am thinking there is nothing I want right now I am totally happy with my lot...I think this is called "inner wealth" xxx Karen

I don't think anyone should enter an IVA thinking its the easy route 'cos its not.

Living to a budget can come as a culture shock and I think this comes to light after a year in. Normally thats when things need repairing/redecorating.

However, to know there will be no more threatening phonecalls/letters is such a relief. You also learn to appreciate the basics in life and wonder why did you spend so much on non essential items. [:(]

The most important thing IMO is to choose the right IVA company for you.

Good luck xx

Kallis3 " A lot of people are in negative equity, myself, I'm not in negative equity, but no way will I be able to remortgage in year 4 due to mine and hubbys age."

Hi Kallis3, continuing on from this, you mention that basically you have the required equity in your home, but because of your age you are unable to release it, we are just 12 - 18 months off state retirement age - unsure if you or your wife are older or not, but this week we got the results of our remortgage attempt (we've still a few months before our TD is concluded), which was that the repayment was many hundreds of £'s above our disposable income.. we are concerned that although we can't raise the required equity, it is there, would the creditors force us to sell our home to get at this money? If this did happen we would be left with absolutely nothing as Pensioners (and I'm also severely disabled)! Incidentally we're in a Scottish Trust Deed, not an IVA.

If it works the same as an IVA then your remortgage repayments can be no more than half of your Trust Deed payments.

We have to try and remortgage up to 85% ltv. If we can't, or if our repayments would be more than 50% of the IVA payments, then our IVA will continue for a further twelve months.

Just for the record, I am 54 and hubby is 61 at the moment.

I don't know whether or not it would be different in a Trust Deed