Am i eligible for an IVA?

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by » Tue Jan 26, 2010 2:27 pm
Hello, I am £25000 in debt but don't really want to include my car finance in any debt plan i enter into (i am going to try and sell it instead) so that brings my debt down to £18500. I owe to 6 creditors, i am employed, and live with my parents. I earn £850 a month but have only just started in my job, although i was earning £200 a week from other sources beforehand and before that had a different job earning £800 a month. I dont have to pay any rent, so minus essentials have around £700 per month left over, although at the moment my bills are about £750, this is why i have to do this. My questions are:
Am i eligible for an IVA? And if so, do you have a rough estimation of how much i can reduce my bills to. Also, if my credit rating is perfectly clear does it matter? Do i need to have missed payments before?


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Posts: 27023
by Shining » Tue Jan 26, 2010 2:42 pm
Hi Rhiannon

Welcome to the forum, I would suggest you talk to a professional about your situation and get some free impartial advice, may I suggest you visit for a list of companies and some reviews of these and contact 2 or 3 to go through your individual circumstance with them.

You do not need to have missed payments but need to be insolvent.

The professionals who post on forum also come highly recommended and they can be contacted through the expert section to the left of this type.

I'm sure there is a solution out there for you and by ringing two or three companies it won't be long before you're on the road to debt freedom.

All the best and do keep us posted on your progress.


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Michael Peoples
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by Michael Peoples » Tue Jan 26, 2010 3:28 pm
Hi Rhiannon and welcome from me too. You should seek advice from an IP irm before you decide to sell any assets or pay various creditors. Your income and expenditure is unsustainable and while an IVA may be an option it is not the only one and you should discuss all the options open to you.


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by kallis3 » Tue Jan 26, 2010 4:36 pm
Welcome from me as well. Totally agree with what Lesley and Michael have said.


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Adam Davies
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by Adam Davies » Tue Jan 26, 2010 4:37 pm
Many people have perfect credit records before entering into IVAs.
If you earn 850 pounds and your unsecured debt payments amount to 750 pounds then you clearly need to do something asap.
Speak with several companies/experts and discuss all options open to you


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Tina Shortland
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by Tina Shortland » Tue Jan 26, 2010 5:54 pm
Hi Rhiannon,
Welcome to the forum, sorry to hear you're having a tough time. Whatever solution ends up being your chosen route you must make sure that the budget you have in place covers all normal expenses you may incur over a year otherwise you may end up overcommitting yourself. It can be hard to work this out for yourself but with the right help and guidance you'll find out what realistically you would have to offer the creditors and therefore what option would suit your circumstances best.


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by Max » Tue Jan 26, 2010 5:58 pm
Hello Tina - must not hog this post - just to tell you your name is still mentioned with great fondness in our house. So pleased you are comming on here. D


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Tina Shortland
Posts: 2950
by Tina Shortland » Tue Jan 26, 2010 6:08 pm
Thanks Max - its always a pleasure knowing we have helped people really turn things around. Best wishes to everyone at home.


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by MelanieGiles » Tue Jan 26, 2010 10:07 pm
On the basis of the disposable income you describe, although this may be very tight you could decide to live frugally for a couple of years to just get the debts repaid as quickly as possible. In these circumstances an IVA is not appropriate, but a DMP where interest and collection charges are frozen could well be an option - but just make sure that you retain sufficient monies to ensure a reasonable standard of living.
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