www.iva.co.uk

I have been reading on this site and others about IVA's but can't seem to find anyone in the same situation as me and thus can't find the info I need.

Firstly I need to know is an IVA only an option for home owners? Nobody seems to have this info.

Secondly when they state an IVA usually lasts five years what would make it last longer.

I owe £20000 approx unsecured so an IVA is appealing in the sense that it could reduce what I have to pay as well as freezing charges and interest. I also owe family £3300 (loan and payment for car), so bankruptcy is not an option since I would lose the case and very probbably not be able to pay my dad back.

I am setting up a debt management plan with Payplan chiefly to see what success they have in getting charges and interest frozen. I am not encouraged by this as I understand there is not guarantee and the companies sometimes strat chasing and charging again down the road.

The Payplan DMP shows a surplus of £126, I honestly worked out £140 but they said I'd missed stuff out (liek clothes, DOH!). I will shortly get a pay rise which would take my surplus to over £200 per month.

Do IVA companies say 15k debt and £200/month premium to get people interested? Or is there a realistic chance you could actually pay back just £12000 on £15k debt????

Thanking anyone who replies in advance.

Hi and welcome to the forum,

Firstly, IVA's are NOT only for homwowners. Secondly, some IVA's run longer than 5 years if you are a homeowner and cannot raise equity in your home when requested. Another reason for a longer IVA could be if you've taken payment breaks during the IVA. Generally they are proposed at 5 years.

Payplan should go through all your options with you. It wouldn't harm to contact a couple of other companies and see what they say.

Some of the adverts that state "pay back £200" are generalising in my opinion. As without your full info, they can't say what your repayments are likely to be. If you can only afford to pay back £12k on a £15k debt than yes that is possible.

Hope this has helped a little.

Hi and welcome from myself too, you can always take some free, impartial advice from an expert in respect of your finances, why not take a look at www.iva.com for a list of companies and some reviews.

The professional who post on the forum do come highly recommended too.

Julie has answered your questions but any others please do post as there is mostly someone around to answer/offer support.

Excellent advice from both Julie and Lesley.

Payplan did go through all the options but I am not entirely comfortable with thier advice. I might try CCCS to see if they give similar advice. Basically the the advisor was pushing the IVA even though they worked out my surplus income to be just £126. All the info I have found on IVA's suggests you need at least £200.

My understanding is this is the lowest amount that would A make it worth the IP's while and B have a chance of the proposal being accepted by the creditors.

The one thing Payplan said which did make sense was that, in terms of my creditors, I am in a fairly good position. I don't have any priority debts and if they took court action it really wouldn't change anything.

One final question what documentation would you need for and IVA? I understand you'd have to send payslips in at least for the annual reassessment once it is setup so I figure you'd need to send them before too.

I really can't see a downside to an IVA in my circumstances. I want to speak to a couple of different providers, I hope they would provide a breakdown of thier costs, because morally I want to pay back as much as I can to my creditors.

There are IVA's that have been approved at lower returns, why don't you contact a couple of the professionals who post on here, they will give you free honest advice. Then you'll know if an IVA is viable for your personal curcumstances.

You're right about supplying paylsips, you'll also need to provide P60's and bank statements.

Whatever route you decide to take, please make sure your 100% happy with the decision.

Keep asking questions as the more info you have the better.

I would certainly speak to another couple of providers. There are some who will do an IVA on less than £200 DI.

As regards Payplan, you need to send in payslips quarterly, but not bank statements.

As regards bankruptcy, you would be discharged after one year usually (sometimes less) and possibly pay across to an IPA for three years. Would your family be willing to wait until after then for you to start paying them back?

As the others say there are companies who will do IVAs at less than £200 per month. However, no IP firm would be able to sanction repayment of a family debt as this would be unfair to the other creditors. There are a few exceptions to this which your IP would be able to discuss but in the vast majority of cases your family would have to wait until the IVA or bankruptcy is over before they could be repaid.

Do they need to see utility bills and a tenancy agreement to prove address? I'm moving shortly, not through choice, so I figure I'm best off waiting until I've moved before setting anything new up.

I might speak to some people on here, cos the constant phone calls are really bugging me

What happens if an IVA is not accepted? Is it a one shot deal?

If I got bankrupt I think I'd lose the car, and still owe him the money. Unless I could show that the car technically still belongs to him. My name is on the log book but I haven't finished paying for it yet.

Hmm so much to consider.

Please speak to an expert, either one of the professionals who post on here via the experts link, or via www.iva.com - the advice is free and they may be able to help you.

IPs do need to see proof of rent payments, ID etc. However, that does not stop you from moving and any arrangement would take into account your new living expenses so you do not need to wait until you have actually moved.

If Payplan are prepared to do an IVA for you with a monthly payment of £125, and you have been comfortable with the service received, I would go for it. Worse case - creditors might turn it down - in which case you can go back to the DMP at no additional cost.

"If Payplan are prepared to do an IVA for you with a monthly payment of £125, and you have been comfortable with the service received, I would go for it. Worse case - creditors might turn it down - in which case you can go back to the DMP at no additional cost."

If this occurs would it be permitted to try again? Really for the sum I owe I wouldn't have thought anything less than £200 would be acceptable really.

I am going to speak to CCCS see what thier take is, then speak to some IVA providers. I doubt I can make a proposal which would be accepted unless and until I get my pay rise (around £1500 a year but its performance related).

Would this be something you would include in an IVA? Its performance related but once granted it cannot be taken away (you have to perform at a certain level for three months which I've done).

That could be dangerous, if you are trying to falsely inflate your disposable income, and a reputable IP firm would want to ensure that you could absolutely afford the payments.

The figures should be the same wherever you go, because they should be based on your own figures and not amounts people say you are allowed to spend.

The inclusion of potential future earnings - especially those based on performance - would also be a dangerous practice and could lead to your IVA defaulting if you do not receive the money.

Do shop around for your advice though, as it is useful to compare the quality and different firms may have different approaches and ideas. For an IVA where you can only afford to pay less than £200, I would suggest that you give ClearDebt a call - if you genuinely can afford £200 then this ought to open up the choice available to you even further.

I agree with Mel's post.

Just to answer your question - if your application were turned down, you could just carry on paying your DMP and then try again once your income is a little more stable.

However, do take advice from a few more companies and let us know what you have decided to do.