'IVA' a lot of bills!!!!!!

[cozmek]

Does anyone know anything about IVA's?

I have just been made redundant as the company went into liquidation.

The monthly outgoings are double my wife's income and we have loans with 2 banks totalling £29,000 including a couple of credit cards!

 

I keep seeing these ads in the daily newspapers and would like to know if this is a direction worth pursuing?

 

What are the pitfalls, benefits....the criteria for being able to have an IVA?

 

Are there ways of doing it independently?

 

As usual, all help appreciated.

[sequenci]

Hi there,

 

Are you a home owner?

 

IVA's are a legally binding insolvency route so not right for everyone; in fact they are actually the best option for VERY few people in debt.

[Billy goat gruff]

I would contact the Consumer Credit Counselling Service - they offer free confidential impartial advice. There are a lot of firms out there who offer IVA services but they take a fee for it. As I say try Consumer Credit Counselling Service first.

[comebackjimmy]

Hi

 

I am sorry to hear of your problems.

 

First of all do your personal Income and expenditure sheet. On the expenditure side prioritize your debts as follows:

 

1. Rent or mortgage

2. Council Tax

3. Utilities, food, transport

4. A small reserve say 5-10%

5. Everything else

 

Any debts you have to pay including loans and credit cards should come out of 5.

 

Then write to each creditor and tell them of your recent circumstances and TELL them what you are able to offer. No matter what they do, stick with that offer.

 

Next, open up another bank account, even a basic bank account, from which you can manage your affairs that is independent of the other banks. This is so they cannot take money needed to operate your household from your account in order to settle their own debts. DO THIS TODAY. People like the COOP and Halifax do basic bank accounts.

 

Next, if you need a payment card try a pre-pay visa or mastercard. I personally like the ones the Post office do. (Though the Halifax as above do a VISA debit card anyway).

 

I would not personally go near an IVA as your hard earned gets swallowed up in fees. I would instead at first try to manage the creditors myself and the above steps put you on the beginnings of a war footing.

 

Not only that but you may pick up employment again soon and be back on track.

 

Also, take Billy goat gruff's advice.