www.iva.co.uk

Can anyone help me, I am curious as to whether an IVA is actually paying off my debts, or am I just paying a company to hold back my creditors for 5 years?

Am concerned that when my IVA is completed, I will be in the same position as when I began my IVA with everyone chasing me for money every month.

Any help on this would be appreciated.

Thanks

Once your IVA is completed then the remainder of your debts will be written off and your creditors won't be chasing you at all.

Hi Rachel,

Yes, don't worry, when your IVA completes successfully you will have paid your unsecured creditors a percentage of your debts and they will write off the rest.

It seems strange that this wasn't made clear to you - have you discussed this with your IP or received any annual reports?

just got myself in a panic about it, best to ask the question rather than worry myself for the next 18 months

Don't worry about it - you will be totally debt free.

Jan's summed it up in a nutshell. You pay off as much as you can afford in 5 years and the rest is written off. If you have a property with equity you can't release there may be an additional 12 months. And one last thing to note is that 5 years is contractually 60 payments so if you have any payment breaks (emergencies only) these payments will still need to be paid e.g. If you have a 3 month payment break the iva will run for 5 years and 3 months to allow you to make 60 payments. If you haven't already spoken to an IP or three or four, there are details at www.iva.com Good luck with making your decision and go with your gut instinct!

Rachel is already in an IVA Broke.

You're absolutely right Rachel198k - best to ask any question rather than worry yourself silly about it. An IVA is legally binding in the same way a divorce is - once its done its done, for good!

Regards,

Whoops,

I'm such a slow typer I forget what I read before I've finished writing!