In serious debt but scared of an IVA

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Post by Kelly_84 » Tue May 14, 2019 6:32 pm
Hi ,
I’m new here and just looking for some advice / reassurance.
Myself and partner are in a fair bit of debt, 38,000 and although we haven’t fallen behind on many payments yet we are starting to struggle. Our outgoings are almost more than incomings and we are struggling to live day to day. I have spoken to a company Hanover insolvency about possibly starting a joint Iva. The amount we would be paying back seems really manageable but what concerns me is that the paper work states our house as an asset. Would we be risking losing it ? (We do have equity in our home but our mortgage company will not allow us to lend to consolidate ) Can the creditors make you release equity or can you choose the extra year of payments ?
Also can any one give any advice on how much an IVA costs and on any reputable firms to use .
I’m really nervous , can’t sleep or think straight . Can any one give me any reassurance at all?


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Post by Foggy » Tue May 14, 2019 6:51 pm
The IVA is designed to allow you to keep the house, rather than lose it. But you WILL have to attempt to release equity towards the end. You only get the extension if unable to remortgage or, in some cases, get a secured loan. Not all firms include the secured loan option, which helps.

I cannot recommend a specific firm, but do suggest you chat to more than one .... my preference is for the smaller / medium sized firms that will treat you as an individual, rather than the IVA Factories. Hopefully other members will give you suggestions.

The IVA doesn't actually cost you anything, unless you repay the full original debt, which doesn't happen very often. The fees are taken out of each monthy payment and are typically around 15% of the monies paid in plus around £1750 for preparing and presenting the paperwork.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


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Post by sue934 » Tue May 14, 2019 7:49 pm
Hi Kelly
Six years ago I was in exactly the same position, we were up to our ears in debt which our mortgage lender refused to consolidate.
I was stressed beyond belief, not sleeping and hardly able to afford everyday living.
Had I read this forum beforehand, I may well have chosen a smaller firm, but went with Stepchange and although the correspondence was a little brusque at times, I have to say the advisors on the phone were lovely and they were super-efficient all round, including a very swift completion, so no complaints from me.
I did not have the secured loan clause thank goodness, so just paid the extra year when I could not remortgage. At times, it is wearing having to account for your spending, completing reviews of income and expenditure etc.
During the term of the IVA I got a better paid job, so with 59% of the salary increase plus numerous PPI payouts, I actually paid a lot mor back than expected, which I feel very proud of.
On reflection, would I have done anything differently? Yes, I would have started the IVA earlier- it was the best financial decision I ever made!


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Post by Kelly_84 » Tue May 14, 2019 8:03 pm
Hi both thank you for replying
I think this is going to be the right option for me . I can’t see any other way out of this . I think it will teach me how to budget properly and not being able to get credit for the duration is a good thing .
With the secured loan side of things was this something that you were made aware off at the start of the agreement?
I’m currently sat reading through the details from Hanover insolvency.

Could some one explain simply for me how much you pay back in extra earnings ? So if you had a pay rise etc ?

I will speak to step change tomor to compare their advice to Hanover ( although to be fair they have been lovely I just feel a bit weary of going with the first company I have come across , and they have some bad reviews)
Thanks again


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Post by Foggy » Tue May 14, 2019 8:37 pm
Yes, Hanover have had their fair share of bad reviews, but, I imagine most firms have at some point.

The 'rehab' side of an IVA is a very welcome side effect for most of us -- brings us back to appreciating money again.

If the firm you choose use the commonly utilised "Protocol" before 2014 it was remortgage or extend on equity release. After 2014 they added a secured loan option. However some firms still use the pre 2014 version. Some like McCambridge Duffy use 'R3' terms, which, I believe, still do not use secured loans as an option. Aperture use the post 2014 version, augmented by their own peculiar interpretation, which generally does us no favours. The moral is: Read the equity release provisions very carefully and make sure you understand them.

Extra income: Overtime and bonus payments are dealt with as and when they happen. Generally you get to keep the equivalent of 10% of normal take home pay and split the rest 50/50 with the IVA. Some IVA's just use a straight 50/50 split. Permanent pay rises are dealt with at the review following the rise, after the review the IVA payment is increased by 50% of the rise. Again some firms are sneaking in an extra review to get their hands on the money right away.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


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Post by abbiesmum2003 » Tue May 14, 2019 8:54 pm
Hi Kelly
First big step is recognising that your debt is becoming unmanagable and realising you need a plan.
Welcome to the forum.
I have been posting here since end 2012. Best thing I ever didnwas find this page and its people.
IVA is scary. But I am
so glad we did it.
We had nearly £50,000. we didnt know we had that much and just managing. Moving money around but scared of every letter that came through the door. every knock at the door and every phone call.
We found this forum and spoke to a few companies and read ALOT of posts about issues before during and after am IVA to really understand what we were getting into.
We went with a lady IP who sadly doesnt take on clients now but set us up so well with a budget amd I will forever be grateful.
Ended up being transfered ti Creditfix who to be fair have been fine-slow and rubbish at communicating but we havent had many issues during the term to bother them about. not Sure id recommend to uou starting out.
Right you need a really good income/expenditure. Realistic values for things like shopping, petrol, childcare etc. then dont forget things like hairdressing, dental, prescriptions, opticians, Meals for work, Car parking etc. not just your direct debits! there are other allowances to take into company never told us about these allowances any only used bills to work out expenditure!
So get your budget right from the start and include EVERYTHING. You cant have allowance for christmas/birthday presemts so need to make savings from your allowances for these things. Hou are allowed some small savings so your share of any overtime, or if you have leftover money from allowances.
As for thenhouse....IVA designed to protect it unlike bankruptcy.
Mortgage payment will be in your allowances.
As for equity release you will need to look into it at around 6 months from the end. if interlocking iva (they arent ‘joint’) you need to see if got equity (usually over £5k of your share). If you have you will need to see if cam remortgage to release some (not all!) The new payment shas to be 50% of your IVA payment, cant go over retirement ageand has to be affordable. we did it last year....had nearly£80k equity amd have released just £8000 for ending the IVA becaus ethats all anyone would lend us and to keep payment in the guideline. Yes its over a stupid number of years (25) but simce its secured on the house it ends as soon as we move so wont pay for 25 years.
If you need a debt solution now then IVa is a good option as gives you life back. No more fear. Hopefully a much reduced payment to one place rather than all the creditors you pay now. No more chasing. No more fees for misses payments. Its basically a 5 year loan where you aim to pay back as much as you can (not as little). Be prepared to lose inheritance, PPI, windfalls over £500 and a share of any overtime.
Windfalls of £499 is all yours to keep...,£500 or more then whole lot goes to IVA.
Look around forum get ideas of issues amd companies.
we are finished now. its gone from register and credit report. we have a credit card but rarely use it. We know every DD date amd value. It has taught us a lesson and bought us our financial future.
Best of luck and keep posting, reading and asking advice on here.


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Post by luluj » Tue May 14, 2019 8:59 pm
You have done the hardest thing - admitting you need some help and speaking out .... not going to repeat the advice already given, but just wanted to assure you that an IVA is not as scary as you may think.
Speak to a couple of firms before deciding on which one to represent you ... let them guide you through this.
Use the forum to ask your questions - there is normally someone about to help and respond....good luck x
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"


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Post by Kelly_84 » Tue May 14, 2019 9:38 pm
Thank you so much for all of your reply’s , it doesn’t seem so bad now !

I think after looking around the forum a bit I’ve come across the company McCambrige Duffy in a few posts so I think I’ll speak with them tomorrow and hopefully get the balling!

Thank you again I really appreciate the advice 😊 x


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Post by sue934 » Wed May 15, 2019 6:43 am
Glad you are feeling better about things.
This forum is great for reassurance when you are having any problems and for information. I only discovered it after I had started my IVA and wish I had seen it before.
I should clarify I paid 50% of extra income to IVA- 59% was a typo! Everything is spelt out to you at the onset and if it isn’t, ask. The sense of relief is fabulous.
Good luck, onward and upward! :D


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Post by Ryan » Wed May 15, 2019 9:22 am
Hi Kelly,

If you feel the IVA route is the best option for you then that's great but just to add although your existing Lender may not be willing to lend there may be others that are. Maybe it's worth looking at a re-mortgage or even taking a secured loan now to repay the money rather than entering into the IVA.

Ryan Radford
IVA Mortgage Expert
Zebra Money Centre

IVA Mortgage advice needed?

Contact me at or via the expert page

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Post by Lisa Thomas » Wed May 15, 2019 11:34 am
I haven't read all the replies so apologies if I am repeating something but all of your questions should easily be answered by Hanover.

Please note there is no such thing as a joint IVA, only interlocking ones.

You should pay over what you can afford and creditors will decide whether they want to vote in favour of it depends how attractive it is and what the outcome looks like when compared to bankruptcy.

Often many debtors enter an IVA for 6 years to include the property equity but it really depends on your circumstances and figures as to what the most attractive realistic proposal is that you should offer.

You have taken the first step - good luck with the rest.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: ... Z5k9ZcC2MA 01752 786800


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Post by Dora06 » Wed May 15, 2019 6:37 pm
We started our IVA in February this year with McCambridge and Duffy. So far i can't fault them. Communication excellent and are easy to get hold of either by phone or email. Staff all very friendly and i felt as though they were very understanding and non judgemental. Would highly recommend them.

Keith White

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Post by Keith White » Wed May 15, 2019 8:10 pm
All the advice so far seems spot on. Always worth talking to a few companies before making a final decision. Feel free to get in touch if you think I can help.
Keith White, IVA advisor at
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Post by AATKIN87 » Fri May 17, 2019 4:58 pm
I was in the exact same position as you a couple of months ago and feeling unbelievably stressed as I had let my credit card debts get out of control. I never missed a payment but was £1,500 into my overdraft every month and relying on my credit cards to pay for food and petrol. The situation just got worse and worse. I posted to this forum as you did and received an email from Keith white who I see has also posted a reply. I can’t even describe how helpful he was. Through Keith I took the plunge and arranged an IVA through a company called middlebrooks who were fantastic and it all went really straightforwardly with my IVA being approved by 100% of my creditors. I checked with Keith re the secured loan aspect as I didn’t want that to happen at all and he reassured me this is not something his IP does. I now have a budget for absolutely everything and actually feel better off now than I did before the IVA began. For example I used to keep topping up my car with 10-15 pounds of petrol each week (often on a credit card) whereas now I fill it up twice a month fully and don’t worry one bit as it’s accounted for in the budget. I honestly can’t recommend contacting Keith white enough. Of course I would prefer not to be in an IVA and regret getting myself into this situation but now I’m on a path to becoming debt free which I don’t think would ever have happened otherwise. I finally feel in control x


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Post by mumof3 » Tue May 21, 2019 1:49 pm
Hi Kelly,

We are 1 1/2 years in to our IVA. Similar debt level to yourself and we got to the point outgoings were a lot higher than income. We hadn’t defaulted yet but knew we would as we were using credit cards to pay other credit cards etc.

Honestly it’s the best thing we have done. Our money is our own now. Learnt to budget properly.

We are with step change and no problems with them at all. Very efficient and friendly.
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