I don't think the IVA I've just signed up for is the right thing for me to do.

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casie
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by casie » Sun Nov 19, 2017 10:58 pm
I’ve just entered into an iva. I’d completely hit rock bottom when I signed up for it, looking through it now I don’t think it’s right for me on my credit report I only owe £4541. Will I be able to enter a dmp if I fail my iva? I currently haven’t made any payments towards my iva
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luluj
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by luluj » Mon Nov 20, 2017 5:07 am
If your debt is as low as this it maybe a different option would be more suitable - you would have to allow your iva to fail by missing three payments and then aporoach your creditors.

Are you sure your debt is that figure and not just what creditors have claimed through the iva process so far ? What did your proposal document list as your debt figures ?

A debt relief order or debt management plan maybe more appropriate if the figure is correct.
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Foggy
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by Foggy » Mon Nov 20, 2017 7:54 am
What shows on your credit report may not be all that you owe -- what debts were put into the IVA ? Under £5k seems low for an IVA and this might not have been the right option.

If you fail the IVA now it will still be on your credit files for 6 years and will trash your credit rating. There is also the chance that your creditors will not co-operate in a DMP, especially already having agreed to one lifeline which you failed.

Weigh up your options carefully -- having got the IVA it might be better to now knuckle down and see it through ... at least you have an end date to work towards.
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Ryan
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by Ryan » Mon Nov 20, 2017 12:28 pm
As has already been said that amount is very low for anyone to be advised to go into an IVA. Best to double check on the figures.

All the best
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MerlinL14
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by MerlinL14 » Mon Nov 20, 2017 12:40 pm
Call me cynical, but how can a reputable company propose an IVA with a debt ceiling so low? OK it may not be as low as £5K as there maybe an element of miscalculation by the OP, but even so if it was ~£30k then you wouldn't say it was 'only' £5k would you. Even if it was 10k the fees alone would almost wipe out any worthwhile dividend to the creditors. Bad news is now you have signed the IVA proposal you are pretty much stuck with a shot credit rating for the next 6 years, even if you decide to fail the IVA by not paying any contributions.
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kallis3
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by kallis3 » Mon Nov 20, 2017 1:18 pm
Which company are you with?
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casie
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by casie » Mon Nov 20, 2017 1:23 pm
The only other thing that’s been included is a tax credit overpayment of £2000. My repayment are low at the moment but once I’m back at work my payment will go up to £300 a month when working out my expenditure. I will have paid my debts plus the £3000 in fees in 3 years
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casie
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by casie » Mon Nov 20, 2017 1:23 pm
kallis3 wrote:
Which company are you with?

Creditfix
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kallis3
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by kallis3 » Mon Nov 20, 2017 1:33 pm
I am surprised they have done an IVA with such low debt.
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Foggy
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by Foggy » Mon Nov 20, 2017 1:39 pm
kallis3 wrote:
I am surprised they have done an IVA with such low debt.


I am not! I have seen several examples of them offering IVA's to low debt applicants. I would love to know if they properly present the alternatives.
IVAconfused75
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by IVAconfused75 » Mon Nov 20, 2017 1:59 pm
It's funny this post should come up. I just feel more and more IVA companies may come under the same scrutiny and investigations as the PPI sagas, one of these days, especially with the rise of people falling into various debts, away from overspending, but along the lines of loss of job, bereavement, poor health.
I personally think anything under 25k shouldn't be in an IVA, but another repayment mechanism. Effectly, it's a sum that some people might earn within a couple of years, or if enough family and friends, might be able to help with, instead of having your home under lock down for 6 years and potentially feeling that you're a prisoner for 12 years, because the completion part is only the first half of the sentence, so to speak.
What are the views of others on this forum? Out of interest?
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casie
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by casie » Mon Nov 20, 2017 2:03 pm
I was offered an alternative
Bankruptcy or dro which is no use to me as my circumstances are definitely set to improve before the end of the 12 months.
I also have no assets I don’t drive so no car and I rent my house
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kallis3
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by kallis3 » Mon Nov 20, 2017 3:23 pm
I think it's a disgrace them doing this!
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SteveUK
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by SteveUK » Mon Nov 20, 2017 3:36 pm
Is there no regulation of IPs/IVA companies?
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Foggy
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by Foggy » Mon Nov 20, 2017 4:01 pm
SteveUK wrote:
Is there no regulation of IPs/IVA companies?


They do have regulatory bodies but these bodies wil not intervene and are more "professional associations" than regulators --- bit like having a fox guarding the chicken house !
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