www.iva.co.uk

I'm in the process of preparing my background information for my IVA and have to give the reasons for why I have the debts etc. How much detail should I write?

Just be honest, its the best way.

Be honest and brief -- they don't want chapter and verse.

In many cases it's something like, " I overstretched myself, believing I could keep up the repayments. However, when the interest rates increased / I lost my regular overtime / the cost of living and utilities spiralled, I realised that I could no longer manage and sought professional advice. "

Thank you Foggy and Doritos, I've been sat here on the laptop for nearly two hours looking at a blank document and have really struggled with this. When the debts have been part of my life for so long it was difficult to know how to be succinct without writing my life history.

I ended mine with something along the lines of "plus I was an idiot", but my IP left that bit out

I've just laughed out loud at my computer screen! That's exactly what I feel like writing - can't believe I've been such an idiot!

I think we've all felt like that at some point!!!!!

You don't need to write a lot, something about finding budgeting difficult and being caught in the credit trap, no longer being able to keep up with minimum payments and having sought professional advice as a result of which you feel an IVA is the best option for you to pay back as much as possible to creditors.

They don't really want more than that.

Obviously if you were made redundant, had to take a pay cut, had an accident which left you on SSP etc then include a sentence about that too.

Brief and honest. It rarely if ever provides little more than background info for creditors.

Paul

Creditors want a piece of humble pie and contrition from debtors.Just give them a Bafta winning paragraph and be done with.

Do not ever feel you have to gut wrench to answer it.Not worth the spotlight.Really.

Such a useless question....given most people are in HP debt now including the country.70 percent of GDP...

Been in unsecure debt and manageable and in serious unsecure debt that need an arrangement means the same to me.

We spent more unsecured borrowing than we can afford.

The only valid lesson,but don't put this in the proposal, is to learn that people incl children are lured and given in to spent to live comfort lifes - allow the marketing men to justify it for them.

If I was given 10 bottles of vodka or 1000 cigs....it will go down the drain.Give that to a drinker You know he will drink it for the love of alcohol...more than the unit recommendation.

It is psychological the spending excess thing.No bank is to be blamed.

We are all tempted...aren't we.

And been made redundant does not ever ever explain why there is excess debt.I think 5k of unsecured personal debt is enough at any one time....most iva are much much more than this?

I never really understood the point in giving such a statement full of contriteness as to why I had got myself into the debt I was in when drafting my proposal.

If I had just said "Because I was reckless" would my creditors have voted against my proposal?

Surely all creditors care about is how they get the best return, and if that is via an IVA then they will vote in favour of the proposal no matter what reasons the debtor gives for their situation.

Not quite Goosed -- although I can't see anyone making such an admission, but I guess if you said I got into debt to feed my drugs habit, they would think twice.

I know some have bravely admitted to gambling debts and the creditors basically need to know this is in the past and that the problem has been addressed.

I have had drug addicts, gamblers, divorcees, disabled etc. Debt crosses all classes and just explain when you first borrowed and what you did with the various types of credit. The background is quite easy and there is a pattern of redundancy, sickness, marital break up, children etc. Do not stress too much about it.

Thank you everyone as always for sound and sensible advice. This forum is an absolute godsend!

Debt is a fact of live....cannot live without it...can't live like a scrooge...
government debt,business debt,personal debt,HP,student debt...no iva on that one!

Do your debt contrition performance like a soap ...with crocodile tears.

Then turn the other cheek.Easy.Use the wife to practice....

I would love to perform the iva proposal in front of creditors.Yeah.

They will accept 1p in the pound when I finish.I bring the kids in it to.

Bankers and creditors...'the agents in the matrix'.