IVA`s....whats your opinion?

pebs · 28th October 2007, 14:27

Its not for me, luckily I only have 1 default.
But a friend of mine is in debt about £40,000 and now is on a low income so has not been paying debtors.
I have seen advertisments for IVA so was going to suggest it, but I dont really know much about it so would like some opinions please.

pebs · 28th October 2007, 15:46

Any advice would be appreciated....Thanks!

gizmo111 · 28th October 2007, 15:52

Some info here

Generally they involve living on a very tight budget for 5 years. Has she got assets to protect?

conar686 · 28th October 2007, 15:55

Also the big banks are now not automatically agreeing to be bound to accept any proposed IVA.

For an IVA to work all or a majority of the creditors have to accept. Its worth a try but go for a free on not one you pay for.

pebs · 28th October 2007, 16:08

Quote:

Originally Posted by gizmo111

Some info here

Generally they involve living on a very tight budget for 5 years. Has she got assets to protect?

She does have a mortgage and the mortgage company have agreed lower payments till they are in a better position.
The rest of the debts are personal loans and secured loans, credit cards etc

pebs · 28th October 2007, 16:15

I`ve just rang her, she has no equity in the house as they borrowed it, hence the debt of secured loans!

gizmo111 · 28th October 2007, 16:17

Quote:

Originally Posted by pebs

I`ve just rang her, she has no equity in the house as they borrowed it, hence the debt of secured loans!

Well prhaps bankruptcy may be an option then, if they had not other debts could they realistically afford the mortgage and secured loan.
Would renting in their area be cheaper?

conar686 · 28th October 2007, 16:17

I also think she should also give this lot a whirl.

National Debtline

pebs · 28th October 2007, 16:20

She was going to declare herself bankrupt, but thought she would lose there home.
Renting is no cheaper in the area really, yes she is just about managing paying the mortgage and utility bills but cant manange much else.

pebs · 28th October 2007, 16:22

Quote:

Originally Posted by conar686

I also think she should also give this lot a whirl.

National Debtline

Thanks, I`ll pass the details on.

She has been scared to open letters, not like me I love a good argument with a dca!!

gizmo111 · 28th October 2007, 16:36

It is scary and a lot of people do bury their head in the sand. As she has no equity, there would be nothing for the OR to take so it is unlikely she would lose the house. But she does need to be sure that she can afford the house, as in a years time if she ends up repossesed she ould end up with a shortfall, which will be another debt she can't pay and she doesn't want to be in the position of facing BR a 2nd time.
In the link I gave you above - there is the links to debt charities including National Debtline.
A realistic budget is her first step to sorting this out.

pebs · 28th October 2007, 16:41

Thanks gizmo, I will give her your advice.
She does not have access to the internet or she could join this forum herself!
I will try to help her though, I`ve already sent a cca request to a credit card company for her since I found this site!

pebs · 28th October 2007, 16:42

Sorry can I just ask....if you declare yourself bankrupt can the secured loans be written off or just the personal loans?

gizmo111 · 28th October 2007, 16:45

Quote:

Originally Posted by pebs

Sorry can I just ask....if you declare yourself bankrupt can the secured loans be written off or just the personal loans?

The secured loan and the mortgage remain, and provided she can pay them nothing will happen to them. The unsecured debt gets written off.

pebs · 28th October 2007, 16:47

Thanks again!

conar686 · 28th October 2007, 16:51

Get her to phone the national debtline & also local consumer counciling service.

gizmo111 · 28th October 2007, 16:57

How much of the £40K is unsecured debt?

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