I have made the first steps toward starting an iva. The lady I spoke to was lovely and very understanding. My concern is that, what if its rejected. She said she is 9.5 out of 10 sure it will go through fine but what scares me is that if we miss payments we will lose the 0% apr we are currently on for credit cards. So if no iva will pay loads in interest. I keep thinking I should keep making payments while she trys to get it through but would this have a negative impact on their decision, i.e. they will think well they are managing to pay us. Can anyone help, not sure what to do.
Making payments will not affect the IVA. However if you can maintain the payments there is no need for an IVA and if you cannot then something will give soon anyway and you will default. If in doubt get a second opinion but if your surplus income is less than your contractual payments then an IVA may be the best way to go.
Thanks for reply. We are scraping by but have had discussions with someone from Vincent bond, who was lovely. For my own piece of mind, I might push on with payments, it scares me not to.
Make sure your debts are going down and you are treading water or even worse. Very few IVAs get rejected so if an IP is happy to sign it out you should be fine. Do a full income and expenditure account and see if the payments are affordable or not.
At present we are managing but balances aren't moving much and wont be at all when interest hits. Some are on 0%, Im worried about losing that by missing payments then the iva being rejected. The lady I spoke to said that all companies we have are big companies and also she did the I and E and we chatted about that. Im just a born worrier but cant keep going like this. Thanks again
If your look for an IVA your insolvent, yes ? So if your IVA proposal fails it's going to be a toss up between bankruptcy and DMP. In DMP I'd think it likley that the payments won't be at the level needed to keep the 0% offer, but the creditors will be asked to freeze interest
During the setup of my IVA I simply saved the payments i would have made to creditors to build a contingency fund. I'd suggest this might be of more benefit than the 0% offer
Thank you Martin. I can see where youre coming from. The lady did say she would be "more than shocked" if there were any probs getting it put through. I guess, Im just scared of the letters coming and calls starting. Havent had that yet as have managed to stay afloat. Then I worry about the financial damage but that's coming at some point regardless.
Maybe a second opinion would give you reassurrance that the iva route was the right way to go .... if in doubt get a second opinion. Vincent Bond are highly recommended ...other firms come recommended too and can be found via www.iva.com
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Thanks Luluj, I guess Im just scared. I keep thinking of five years of being so stringent with everything but then I think five years with paying out so much every month and no guarantee we would even be clear.
Maybe she isn't the ip, maybe shes first point of contact with Vincent Bond, not sure now! Theres others things going on in my head too Foggy but not comfortable putting it on here.
