www.iva.co.uk

I was in a dept management plan for 5 years and in May they went into receivership without paying no money to my creditors, I lost £16,000. I now have to start an IVA. I have an ISA as a saving would I have to declare my savings to the IVA, it seems so unfair because this was not my fault.

Hi Patrice and welcome to the forum

Are you saying that for the full 5 years you were paying into a DMP no money was actually paid to your creditors? If so, that is absolutely shocking - which firm were you using?

I am afraid that if you are now going to propose an IVA, that you will have to declare all monies you are holding in savings - as creditors may wonder how you have been able to build up savings at all when you have been paying reduced amounts to them - albeit it seems that they may not have been receiving them.

How much have you actually managed to save over this period?

Thanks for your reply Melanie. The company was Step Finance. I was paying money to Step Finance and they did not not pay my creditors, last year I was told that one of dept was written off because they couldn't prove it, which was all lies. My ISA is not a lot because I couldn't afford a lot of money its only £1000. Step Finance did received the money I had a standing order for 5 years.

This sounds awful and very unfair. Unfortunately all savings will need to be declared in your iva however small ...good luck with it all

The £1,000 could fund bankruptcy costs if this is the right option for you. Alternatively you could ask creditors to exclude it as it is a contingency fund which will no doubt be needed over the next five years. They may be sympathetic given that you have paid for five years and lost all your money.

Discuss the various options with your chosen IP firm.

Were they First Step Finance by chance?