New to iva but Id need some answers

[Martin34]

Hi guys Ive been reading lately about iva as my time has come to finally admit I need some help with my debts.. I fall under 20k mark so it was suggested to me by one of the firms that they can sort me out with monthly payments of 80£ a month on a single plan. I do live with my partner we have 2 children, so my questions is.. How does the life look like having iva in place I'm taking about the budget, I know that I won't be able to live as would have wanted but how does It look like in general can you still go holidays drive a car normally rent a house if need be etc.. Please help me out as I dont want to put my family at more stressful situation as. It is.. I've been paying my ceeditors on time but recently I just had to spend all my wages to pay them on time and been left with nothing so I feel worried that next month might be even worse specially that I'm self employed and my wages varies from month to month.. Thank in advance

[Foggy]

Do you currently own or rent your property ? From your questions, I would assume rent. Depending on if you qualify, with that level of debt, a DRO might be worth looking into. Details here: https://www.stepchange.org/how-we-help/ ... lsrc=aw.ds

Life in an IVA is, for the most part, not easy, but better than battling crippling debt repayments. Your credit rating, however, will be rubbished for 6 years, which does make renting difficult --- you need to either go private or, if through an agency, offer larger deposits / rent up front and / or a guarantor. Sticking to a budget becomes a way of life if you are willing to give it a fair go --- I am 7 years 'out the other side' now and still live to my IVA budget, which allows me to save for the first time ever in my (long) adult life !
Holidays and celebrations can be worked in, if careful. For instance, I pay for Christmas with Tesco points and shopping vouchers earned by online surveys. Holidays do get relegated to 'Sun Offers' and camping for a while, but are doable.
Speak to more than one insolvency firm, and, being self employed, try to find one that is experienced with self-employment, as the usual 'one size fits all' offered by the 'IVA Factory' firms might come unravelled !

[Martin34]

Thanks for a quick reply. I do understand my credit will be affected.. Its just I don't understand the whole budgeting as I know you have to report your outgoings but I mean if Id be paying hypotethicaly speaking 80£ a month instead of my 500+ a month to all creditors then I will have some spare cash.. What do I do then do I take that out of account and keep it with me and If I want to go on holiday would I not be able to pay in cash and go for all inclusive holiday for example? I know it sounds cheeky but do I have to tell them every single spending? Im preety sure people have their own system doing things, I'm just thinking of level of life.. Is that 6 years going to be really tight?

[kallis3]

You are unlikely to have enough money to save much. Every penny should be accounted for.

[Foggy]

Basically they take your total income (after tax etc.) and deduct from that agreed amounts for you to live on and pays essential bills. Everything that is left goes to the IVA. They will want to see proof of income as well as evidence of the essential outgoings, especially if they fall outside of the agreed guidelines. They will check your payslips and or accounts as well as bank statements. In theory, you will not have wads of cash to pop under the mattress.

[Lisa Thomas]

You need to explore all of your options.

An IVA doesn't seem to be the best option for you based on what you have said.

I would explore a DMP, DRO or Bankruptcy first.

Here is a brief summary:

https://youtu.be/TgalT1vhn6M