what are the implications of an IVA

[b.j]

what are the implications of an IVA

[kallis3]

Hi bj, and welcome.

An IVA is a way of repaying as much of your debt as you can afford in a set time. You will make a set payment each month. You need to have over £15,000 debt with three or more creditors.

Most IVA's last for 5 years, but some last for 6. You may be asked to release some equity in your house during the 4th year if you own you own house, or in some cases, you may have to sell your house.

It is not the same as bankruptcy, but your credit rating will be shot for 6 years after your IVA has been approved. Your employer will not be told of your IVA. You will probably have to find a new bank account.

At the end of the term, however much of the debt is left is written off.

Your name will be placed on the Insolvency Register.

[Maz]

Hi bj and welcome, yes I think the biggest implication is that your details, name, address etc. is added to the Insolvency Register unfortunately!

Maz

[kallis3]

I forgot to say as well, that it is legally binding. If you do keep up the payments, your IVA will fail. The options left to you then would be either a Debt Management Plan or Bankruptcy.

[Maz]

Also bj 50% of any overtime, bonuses etc. may be taken into consideration as extra payments on top of what you have agreed to pay monthly.

[kallis3]

I forgot that as well!

There is also an annual review, and it is possible that your payments could go up if your income has increased by a significant amount compared with your outgoings.

On the plus side, your creditors will stop hassling you. You are protected by the IVA and they cannot contact you.

[Martin2011]

Hi BJ.... depends on perspective.... for me the implications were;

1. The end of a 10 year worsening nightmare of debt
2. The ability to go to sleep thinking about something other than
money.
3. Satisfaction of knowing everything I'm buying is with my money
4. The end of junk mail and phone calls from creditors
5. A real date when I know I'll be totally debt free
6. Relief like I'd never experienced before (BJ notwithstanding of
course!! )

Have a read around this site, there's much to learn and you'll get more support than you can imagine. Good luck with whatever you decide, and best wishes

Martin

[Sarah Nancollas]

HI bj

There are several implications to consider if entering into an IVA - the main ones have been dealt with above (although I would say that an IVA doesn't have to last 5 years - depends on your circumstances). If you are considering it you need to get professional advice on all of your options - it maybe that there is a more suitable option for you depending on YOUR circumstances. I would suggest that you contact 2 or 3 Insolvency Practitioners in you area and go and see them. You can find them in the Yellow Pages or on www.r3.org.uk. They should all be willing to see you and not charge you. By doing this you should get advice on all of the options so that you can make an informed decision.

[Abby]

bit cheeky that one.[:I]