www.iva.co.uk

When I get my IVA, does this mean all ties are severed from the creditors? So I would be free from them and they would not be able to contact me ever? i.e. the debt removed from them altogher, like passed over so to speak?

Effectively - as your IP will continue to liaise with the creditors and pay them regular dividends. You do not get rid of the remaining debt, until you have fully complied with the terms of the arrangement - ie paid over all of your contributions.

MelanieGiles wrote:

Effectively - as your IP will continue to liaise with the creditors and pay them regular dividends. You do not get rid of the remaining debt, until you have fully complied with the terms of the arrangement - ie paid over all of your contributions.

What if I couldn't keep up with payments?

Hi,

Then your IVA would be terminated and you would have the creditors on your case again plus the money you paid in to your IVA would be gone as the IP would take it for there costs

Or you could declare yourself bankrupt or enter into a DMP with the creditors instead.

MelanieGiles wrote:

Or you could declare yourself bankrupt or enter into a DMP with the creditors instead.

But they wouldn't be able to take my house, would they?

Your house could be at risk yes.

Hi
If you are declared bankruptcy or the co owner of the house is declared bankrupt then their share of any equity will be passed to the OR.The OR will then have upto three years to release that equity by way of a forced house sale or for someone to buy that equity from the OR
Regards

I wasn't sure but I thought the IVA would protect me from creditors in any event? The bankruptcy issue is a bit confusing i.e. if I don't choose to declare myself bankrupt, then that is down to me and creditors cannot do much except pass the debts to a collection agency? Sorry if I sound a bit naive, but I hear and read stuff that is sometimes a bit contradictory?

An IVA does protect you from the claims of creditors, Juliada. If you are confused, then I suggest you have a chat with an insolvency practitioner who can help you to understand some of the issues which may be difficult to grasp.

You really do need to speak to an IP. This is such a life changing decision and you need to be sure of what you are doing x

Hi
Whilst in an IVA you are indeed protected by your creditors,however if your IVA fails then your creditors are free to chase for the debts again and this could mean that they make you bankrupt and your house will be at risk.
Regards

Hi Andy, thanks for the advice, which has answered all my questions (but now more scared of HSBC than I was before!) x

HSBC are generally a very supportive creditor of IVAs, they just work to a very high minimum dividend criteria.

Hi Melanie, I did a overhaul of my incoming and outgoings per month last night and although I can just about cover everything, I have no money left over for food or petrol (which is normally around about £400) and I read this print-out on IVA's my friend gave me and it says quote "a bank's ideal candidate is someone with a stable income, with enough spare cash after 'essential' spending to be able to afford this amount". (£200 is the amount in question). Well according to that I'm not an ideal candidate am I? What will I do? The last time I spoke to the bank asking for their help, they froze my flexiloan, which made things worse for me and cancelled my switch and replaced it with a solo. This is why I'm not wanting approach them again until I know an IVA will be accepted.