www.iva.co.uk

how long after an iva would i be able to get credit again providing everything else was up to date and there was no other reason to be refussed credit

Also what is the minimum i have to have left over after paying all of my priority bills to be able to apply for an iva. i am a mother of 3 and live off of benefits if that makes any difference to the answer

Hey rebecca, welcome to the forum. I'm not sure an IVA would be suitable for you if benefit is your only income. If you don't mind posting a few more details about the amount of debt and your income then the experts can help. X

The iva is visible on your credit reference report for 6yrs after the acceptance date of the iva. after the IVA entry is removed you will basically have to rebuild your credit worthiness. The first step would be to run a bank account with debit and overdraft facilities successfully for a period of time.

KLG2002

Hi
I think that most IVA providers are reluctant to propose IVAs where all the income is benefit based.
A DMP or bankruptcy may be a better option
Please post more details
Regards

i have been told by the citizens advice that even though i am on benefits i would still be able to go for the iva as im in £19,000 worth of debt and if i was going to go for the dmp then i will be in debt for 16 years or more i was also told i could go for bankruptcy but then i would loose my car which i really dont want to do as i really rely on it so that only really leaves the iva which i have been told will leave me short for money but i could manage and also means i will only be in debt for 5 years so really sounds temting but i was also told that the cab advisor really doesnt like them as there really isnt any going back and that was how it was left as my appoimtment ended so im now wondering how much is the minimum i could pay into an iva and my other question has already been answered which was how long after the iva could i get credit

Hey rebecca, I'm just going to bump you up for Melanie or Andy to advise you. X

Hi Rebecca-w and welcome.

You would not necessarily lose your car if you went bankrupt. Depends on how much it is worth.

Obviously if it is worth a lot of money,then you would lose it, but there are a lot of people on here who are Br and have kept their cars.

Minimum payment for an IVa is usually £200 per month plus. As for the advisor telling you there is no going back, that is technically correct as they are legally binding, but if you fail to make payments for three months, then it would fail and you would have to revert back to DMP or BR.

You cannot normally do an IVA if your only income is from benefits.

I would suggest that you need to speak to an Insolvency Practitioner. If you got to IVA.com, you should be able to find one to whom you can speak and ask advice. Much better than cab.

As to credit, your credit record would be shot for six years from the date of your IVA.

Creditors are very unlikely to accept an IVA where your income solely is derived from benefits. IP providers don't make the rules here - that firmly lies with the lenders.

BR sounds like the best option in my opinion.

i really would love to go bankrupt to end this mess once and for all but my car is worth £4,000 and to be honest is all i have that is actually worth anything and took a lot of hard work to get plus like i said i really do rely on it as my son has adhd so i have appointments to get to that are not in my home town and also i left my original home town 2 years ago, i havent moved miles away but its a 15 minute drive and to far to walk so i wouldnt be able to pop and see any friends or family without the bus. it seems i got some wrong advice as the cab adviser said i could definatly go for the iva even though i said i had previously been told it was not an option.

There is a sister site to this, which deals with bankruptcy, the link is in the top left hand corner of this site.

I would think that you could make a case to keep your car, but you really do need to speak to someone experienced in bankruptcy.

Hi Rebecca ... just wanted to welcome you to the Forum and wish you lots of luck in finding a solution to your debt problems ... and you WILL find a solution [:)]

I think that you need to think of the long term here. You should be able to keep a car, the experts would know more but as far as I remember the allowance is usually around £2000? But bankruptcy would give you a fresh, new start and you may be able to bounce back again more quickly than struggling for five years in an IVA. Do you own your own home or are you in rented accomadation?

I wouls also be a little worried as to why you would be wanting to think about applying for credit again so soon ... the idea of an IVA or bankruptcy is that is should rehabilitate our spending habits and views re money.

Do keep posting for you are amongst friends here.

Debbie

Hey rebecca, don't worry about the car, if you really need it and the Official Receiver(who will deal with the bankruptcy) thinks that it is worth too much, they will take it but give you an allowance to buy another car. You may be able to keep the one you have anyway. Kallis mentioned the sister site, you'll get great advice over there from experts and people who are going through the same as you, give it a go. www.bankruptcyhelp.org.uk Good luck. X

my house is rented and im not worried about getting credit in the short term i was thinking more long term as maybe one day i may be in a situation where i could affofd a mortgage and i no that wont be any time soon i just didnt want to mess my credit up for the next 10 years

Regardless of whether you do br or and iva, your credit rating will be shot for 6 years from the date of the br or the iva.

If you are struggling with payments now, your credit rating will not be good, so the sooner you can get something sorted, the quicker you can start to repair your credit.