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Hi I am 24 and it has been suggested I get an IVA, however I have some concerns - I still live with my parents and brother and am worried that it will affect their credit. Also what are the chances of getting refused - I read somewhere that if you are refused an IVA you are made bankrupt, is this true - I am not in enough trouble to be bankrupt. Also final concern, i got a loan out a few months ago to consolidate some debts thinking I could afford it but am struggling to, I dont want to be done for fraud because I took the loan when I was in a better situation and not struggling as much as I am now (recession and all)

Please can someone help

Hi and welcome.

First of all, who has suggested that you go for an IVA? Is it a professional?

Secondly if you are refused an IVA you will not be made bankrupt automatically. You could do a debt management plan instead.

I suggest you contact an IP to seek advice, and all your options will be explained to you and a way forward advised.

Visit www.iva.com for a list of companies you can phone, or you could phone Melanie Giles, Andy Davie or Vikiw who all post on here and come highly recommended. You can find their details on the left hand side of the page under experts.

Your family's credit rating shouldn't be affected unless you have any joint finances.

Can you post a bit more about your situation?

Hi Rachel and welcome.

Jan is completely correct but also you do not have to worry about any fraud. It is possible to have your bankruptcy extended if you have been reckless with creditors' money but if you can show what was repaid from the consolidation loan it is unlikely to be an issue.

Entering into an IVA for a five year repayment period is a major commitment, and it is vital that you receive proper professional advice with regard to your options.

Over 80% of all IVA proposals which are put in front of creditors are actually accepted, and you need not worry about your relatives credit ratings being affected as this should not happen.

Visit www.iva.com to see reviews on a number of practitioners. Select one or two - give them all your details and I am sure the appropriate advice will be given. Good luck and don't worry.