www.iva.co.uk

Hi I’m just awaiting my meeting next week now with my creditors and I’m really worried it will get rejected. Credit fix has sent a proposal but I’m worried it will get rejected

Natwest overdraft - £1826
Natwest loan - £2811
Aqua - £3097
Next - £608
Halifax - £66
Capital one - £503

Has anyone got any Iva expiriences with this companies? Really worried it will be rejected

CF would not put the proposal forward if they did not think it would be accepted. You do have a low level of debt for an IVA, were all options available explained to you? Can I ask what your repayments are going to be and are you a homeowner?

As Kallis says -- an IVA is a bit of a drastic move for a modest debt. CF has a habit of having meetings adjourned for various reasons, so be prepared to wait on the outcome. They also have a habit of doing everything their own way ( not always for our benefit), so are difficult to deal with in my opinion.

What other options were explained to you and why did you choose an IVA over, say, a debt management plan ?

Yes they did say debt management plan but they said that you do face charges for that and Iva no charges and repayment is £91 a month that’s what they have proposed

You do pay fees for an IVA which will come out of your payments but CF are one of the highest chargers for this. A DMP, if you use the right firm such as Stepchange do not charge fees - the creditors pay for it.

Oh really does it do less damage to your credit rating too going through a dmp with step change

It makes no difference to your credit rating as it will be shot either way and there are no guarantees that interest and charges will be frozen in a DMP but you will pay off your debt in full - may just take a little longer but be aware that CF do have a habit of moving the goalposts while you are in your IVA.

I would suggest that you have a chat with Stepchange. On your £9,000 debt at, say, £100 per month, a DMP will take around 90 months, so longer than an IVA. Creditors will get all of the debt back ( assuming they agree fo freeze interest ).

An IVA will take 60 or 72 months (sometimes they extend to compensate for low payment rates) . So at £100 per month you will pay £6,000 0r £7,200. Of that CreditFix will take, in fees, around half.

CF have, at best, been inventive with the truth.

So does that mean after my iva finishes with credit fix will I still owe money in debt? Then due to them taking fees?

No you won't - these are factored into your payments.

Anything unpaid at the end is written off.