www.iva.co.uk

Hi, all so the cost of living has swamped me, problem is we were in an IVA about 5 years ago as well sadly ended up like this again mainly due to the pandemic, cost of living and some high-interest loans. Yes I know I've made a mistake again

I thought a DRO would be good, but not sure can keep the car, and also debt management plan was going to try but IVA might be best.

Going to contact step change, but before I do a bit of advice.

I have a car on HP it's worth £7,500 we really need our car for a number of reasons and living in a village would we be able to keep it?

Also, I have a loan through commsave credit union are these allowed in an IVA?

I feel so stupid and disgusted getting into debt again

I rent a house we could handle everything then our cost of living must have gone up nearly 300 plus pounds a month and our daughter has moved out so these changes put us under.

My commsave is 3000
car is 5000

Then credit cards, store cards and little loans are another 10,000

we pay £620 a month and a lot of that is minimum payments.

The biggest credit card is £1300 then mainly all little debts under a thousand.

Think a DMP be better?

Thank you for the advice.

PS: Another thing is I stupidly took a 3k loan out to try to pay a couple of credit cards. Only made a couple of payments will this be accepted into the IVA?

The car will prevent you from getting a DRO, but is theoretically alright in an IVA. In an IVA you should be allowed the car payments as an essential expense (assuming the loan agreement is secured on the car as HP or a PCP). However, you should check with the lender as they might repossess under an insolvency clause if you enter formal insolvency. If the car is on a PCP arrangement, you also have to consider what you will do when the balloon payment is due.

Credit Union loans are permitted to be included in an IVA, but credit unions tend to vote no and could swing a rejection overall, depending on who actually bothers to vote.

A DMP is less formal, but could last a LOT longer. On your figures it might not be too 'out there' to seriously consider. StepChange are the ones for a DMP as they do these fee free.

As for the recent loan -- many of us tried to consolidate to the very last minute, so such things are usually tolerated --- had it been to blow on a holiday, it might be looked at more harshly.

The car is on HP with ZOPA we also have a credit card with them but not putting these in the IVA.

Does that keep the car safe?

Sat Apr 09, 2022 11:58 amindebtyetagain wrote:

The car is on HP with ZOPA we also have a credit card with them but not putting these in the IVA.

Does that keep the car safe?

The credit card will have to be included in the IVA -- it is all or nothing for your unsecured debt.

Whether the car is safe or not will depend on ZOPA's attitude to insolvency. Most firms have an insolvency clause, but not all of them act on it as they know they are likely to still get the agreed repayments under an IVA budget.

Our car is on HP do we have to include it in the debt as well?

Firstly, check your HP paperwork to see what it says about Insolvency. Secondly you have to inform your IP company about everything and see what they say. You may be able to continue to pay it alongside an IVA payment.

Sat Apr 09, 2022 5:07 pmindebtyetagain wrote:

Our car is on HP do we have to include it in the debt as well?

HP is a secured debt, so will not be included in the IVA. An IVA only covers unsecured lending. However, it has to be declared as the payment will form part of your Income and Expenditure Report and will have to be allowed for in your agreed expenses.

Life is tough for us all and I am sure you are not alone in getting into financial trouble for a second time. The fact is you are wiser to the options available to help support you through this time.

Creditors will look to see why its happened, but they will also want to see how it can be prevented from happening again.

As foggy says everything should be declared and your income and expenditure assessed fully.

Good luck and let us know how you get on

The car HP when did it start, when will it end and what are the monthly payments?

Do you think these monthly payments have been a large part of your financial problems from the beginning so you have had to get into more debt elsewhere? If this has happened to you an alternative may be to make a complaint about that so the interest is removed. And go on a DMP while this complaint is being sorted.

It has been literally the utility hikes, food, petrol, council tax and our daughter moving out.

The cost of living has gone up nearly 300 a month, now we lose 250 a month from our daughter moving out.

So that puts us £550 a month down.

I still don't know what to do.

You need to speak to your IP company and sort it out with them. All of us are suffering with the price increases and the companies have to realise this and help us out.

people are saying I would be better doing a DMP what do you guys think? I am running all my details through stepchange at the moment.

Mon Apr 11, 2022 1:19 pmindebtyetagain wrote:

people are saying I would be better doing a DMP what do you guys think? I am running all my details through stepchange at the moment.

It depends on what you can afford to pay each month and the time it will take to repay the full debt (assuming creditors agree to suspend interest charges ) . A DMP is not a 'formal' solution and you are not declaring insolvency. It will have less of an immediate impact.

Yes, I still don't think my payments would come down far enough on the DMP.

Still worried about the car but ill be paying that as secured debt but still can't see how anyone can take it as I'm paying it. Its £115 a month for our car.

As it is secured then an IVA company cannot take it from you.