IVA's - has anyone used one?

[gizmo111]

Have a read here

 

IVA's are not suitable for many people as they are so restrictive, and leave you with very little if any spare money. How much can you afford each month?

[gizmo111]

Hi there

 

There are many IVA companies out there that look into your income and expenditure to see what you can comfortably afford to pay, and that are not restrictive. I read up about IVAs before going into a DMP. Payplan have both DMPs and IVAs, so may be worth looking at their IVAs.

 

I have yet to see one that gives the debtor any leeway with their finances at all. The creditors want to squeeze as much as they can out of you.

Although bankruptcy, from the outset may seem the best option with you not having any assets, bankruptcy is more restrictive than an IVA. It carries stigma with it. Once you go bankrupt, your debts will be cleared within 12 months, but they can ask you to pay into an income payment order for a further 3 years. It can affect your chances of getting further tenancies, credit, mortgages etc in the future and can also affect your career.

IVAs are generally an alternative to bankruptcy. They will look through your income and expenditure to see how much you can realistically afford to pay, and you will propose that to your creditors. It is then up to your creditors whether they accept or reject your offer. I know, with Payplan that if the creditors reject your offer, they do not charge fees, unlike other companies, so you wouldnt have lost anything by giving it a go. The more sustainable the payment, the better, as the creditors will not want to see a tight budget, as this will mean you may have to use further credit to get by and it is not realistic.

The IVA is on your credit rating for 6 years like bankruptcy, but does not carry any stigma.

I hope this helps.

 

BR does not carry any stigma these days, and only a few careers are affected by it. An IVA will affect your credit rating as much as BR will. IVA's do not allow you to get further credit ' to get by' or for any otehr reason.

An IPA for 3 years takes 60% of your surplus income and is much more realistic budget wise than an IVA. With BR if your circumstances change for the worse you can renegotiate, with an IVA the best you can do is extend the payments for a year.

IVA's are suitable for very few people.