Borrowing to End An IVA

[litmarvic]

Hi Guys,

Obviously taking on any further borrowing while in an IVA is in breech of your IVA however, looking at what I pay for my IVA each month and the potential settlement figure, it would appear that a loan to clear off the IVA wouldn't be much more per month (if any) than the IVA payment.

Do people take out (unsecured) loans to clear off IVA's or is there companies that broker this arrangement to avoid the person breeching their IVA ?

I'm asking this because my property isn't included in the IVA and has very little (if any) releasable equity. Also I have an option of a promotion at work in 6 - 12 months but i'm currently not persuing it as it would be pretty pointless as my IP seems determined to take every penny they can from me.

Thankyou

Mac & Tori

[MelanieGiles]

You will not get an unsecured loan whilst you are subject to the IVA, and this would not be sensible as you will not have paid it off by the time the IVA would have ended - so you would be probably extending the repayment term rather than reducing it.

When you enter into an IVA, you do so on the basis that you do agree pay over all of your surplus funds to creditors. The IP is therefore acting correctly when they ask you to pay over more money. I feel that it is sad you are putting your career on hold just because of having to pay more money to creditors - when you took the debts out in the first place you surely did so with the intention of paying them in full?



Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[OPTIMIST12]

I agree with Melanie. Take the promotion while it is on offer even if it means that - in the short term - there is little or no financial benefit. An IVA does not last for ever and when it is finished you will have that extra "promotion" money all to yourself. AND you will hopefully be that much nearer to yor NEXT promotion!!!

[pixie]

If the opportunity is there you should definatly take it. You can't put your life on hold for 5 years. Whilst you may not see the financial benefit, you will gain in experience.
I was given a promotion 2 months ago, without a pay rise. It's helped my dented confidence no end, at least one area of my life is going right!

[kah]

I suspect from reading this forum for some time that many of the attitudes we see here are influenced very strongly by the the level of sevice/help provided by the IP. A good IVA is very hard to get through but possible. I suspect quite a lot of us (our own fault - trying to make the best decision for ourselves and our creditors and our families) find becoming involved with the IVA rather like a scarey roller coaster ride - you don't feel you can get off at ANY point - the proposal is not quite the same as you originally discussed - or you didn't quite get the figures right in relation to your actual living costs - there is no time given to consider without the possibility of failure of the proposal - it's like an exam you need to pass ... And it seems that IPs are often not keen to consider asking for modifications ...

I think I'm feeling similar to the first posters on this topic. Yes I want to pay it all back - yes I'm willing to go without - surprisingly I'm in an IVA without having ever had holidays - bought new furniture or shopped much outside charities, tesco etc (domestic difficulties and ill health elsewhere in the family) - so this way of living is not new to me.

F & F seems less and less likely if you have an equity release scheme and house price rises are altering the IVA equation. So accepting that after the 5 years we'll still be paying significant repayments - these IVAs are possibly a less manageable way of paying off our debts. We'll end up paying it all (which is right) but paying in a way that might bankrupt us in the first years. Is there a way out - to move to DMP - to remprtgage. If you feel the IVA was a mistake - can you get out without bankrupcy?

[MelanieGiles]

There are only two ways of "getting out" of an IVA. The first one is to honour the pledged commitment, pay the payments - with increases if necessary - and see an end to your debts at the end of the arrangement, the second to stop making payments and either petition for bankruptcy or come to another arrangement with your creditors once the IVA has failed due to default.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
Kah,one of the best posts that I have seen for some time.
Right on the button.

An IVA is not easy and there are many,many people who enter into one without realising the full consequences.Yes it is their fault for not taking the time to understand it all but equally it is the IP that is at fault for not ensuring that the ins and outs are explained and understood.
Has anyone any thoughts on a staggered IVA where in the first year you pay 100% of your disposible income reducing by 5% each year [95% year 2,90% year 3,85% year 4 and 80% year 5]This would be an incentive to continue with the IVA when times get tough and the further you get into it the better the rewards[more income to yourself].
Remember in bankruptcy the maximum you will pay will be 70% over three years.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[pixie]

Hi Andy
I think a staggered IVA would be a very good idea, but for different reasons!
As time goes on car repairs etc. are bound to increase and many household items are not going to last that long. Even after 5 years it's still going to take time to be able to replace things. The extra disposable income would help with this.

[Skippy]

That's a very good idea Andy! It would also give people an incentive to take promotion or get a better paid job as they would know that they will get some of the extra money.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

I am sure TIX would love that suggestion Andy - will you phone them or me!!!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
I would love to have a discussion with the people on the other side of the fence.
One day maybe
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp