IVA

A question about : IVA

Hi

I have an IVA with my partner and we have another 3 years left to pay on it, we pay Ј400 a month on this, and also have a car finance which we kept seperate from the IVA, which is Ј250 a month, we are starting to struggle paying the IVA any ideas on how we can get out of the IVA.

We started the IVA 2 years ago in January, we had about Ј25,000 debt, which was credit cards, loans and store cards (between the both of us). The problem is the company who we have the IVA with are taking Ј10,000 + of the debt so we hardly pay the creditors any money a month, im very confused on what to do.
:confused:
Help!!!!
Many thanks

Best answers:

• Ј10,000 out of the IVA? That's horrendous. The worst I've heard.
  Have you checked the terms and conditions of your IVA?
  Do you have property to protect such as house? If not, you may be able to get out of it on the basis that it was mis-sold.
  I would suggest you call CCCS who are a charity. They do not charge for their advice and if an IVA is suitable for you, then they will recommend it but not for the FEES you are paying. They only recommend them to about 3% of their clients so act in YOUR interests only so their set up fees are a lot less than you are paying.
  I hate IVA's.
• Too true, do your best to get out of this IVA somehow.
  We almost went IVA because of all the hard sell, but then (luckily) went to CCCS. Hope it works out for you.
• I have no mortage I rent and we went through an accounts and i think thats why they take so much money from it.
  Because its gone through court, do you know if there is any way that we can write to the creditors and ask them if we can pay them back directly and then do something with the people who we pay the IVA to?
  They are all very confusing i wish we never got one, but at the time we were in a mess and didnt know what to do, few years later we are no better off.
• It sounds like it was mis-sold then as IVA's are only really suitable if you have property to protect and you don't wish to go bankrupt. Sadly, so many end in BR - just check out the BR board and you'll see what I mean.
  I seriously think you should ring CCCS on Monday and National Debtline (also free!) who I think are open until about midday tomorrow (keep trying with them as they are busy). I nearly went for an IVA but CCCS recommended a dmp so I am paying my creditors directly. They may prefer this, as they will receive all the money back instead of sharks taking their share, although it may take longer to pay.
  From what I have read about them, there are ways of getting out of them but you may need to speak to your IVA provider.
  Sorry, not sure what else to suggest.
• hmmmm, 5 years at Ј400 pm is Ј24000 against Ј25000 debt. Ј10000 charges, We can see who the winners are here.
  Are IVA Co's regulated yet? National Debtline tomorrow is good idea,
• It with an accountants who are based in Manchester
  Oh i just checked with my boyfriend and the debt was Ј30,000 sorry not Ј25,000 but its still crap.
• My friend and his ex wife have also been charged over Ј10,100 for his IVA, and 86p in the pound off his debt meaning that he will be paying back more than he originally owed. His payments are set at Ј973 PM (rising to Ј1,200 PM in the last year) which was based on all earnings including ALL overtime. This was 100% of residual joint income, but using an unrealistic wage. He did query it at the time and said overtime was not guarenteed but he was told it HAD to be included as regular wage. After 27 months of paying, and cutting back on mortgage payments, his marriage broke down and he has moved in with me. Neither he nor his ex wife can make the payments as there is no residual income for either party. He also is up to 7 months of arrears with the mortgage company - about Ј6,000. He nor his ex wife have ever met the IP nor had a face to face conversation with anyone from the company. He was told to do his annual update via a "financial helpline" which he was charged Ј1650 for (small print in the agreement). He has paid just under Ј30,000 into the IVA so far for a Ј54,000 debt. We checked his credit file yesterday and it appears that only about Ј1,500 in total has been paid to the creditors. He desperately needs to get out of the IVA but is worried that his ex wife will lose the house - something none of us want. There is approx' Ј10,000 equity in the house and the only other asset is her car worth approx' Ј6,000 which she needs for work. She has considered a cheaper car but because of a disability it is unlikely to be cost effective. I feel he was very badly advised or even mis-sold, and also for the level of his individual debt would be much better on a DMP. I'd be interested to hear what anyone else thinks or any advice on getting out of this mess without losing the house. Thanks
• Hi samoya welcome to the forum
  Quote:
• Thanks i will start a new thread.
  As far as professional advice goes,
  I spoke to National debtline yesterday and they were great. It was them that suggested that the IVA was mis sold. I scour this site religiously for tips and ideas and I would like to think i'm quite clued up with money issues, having got myself out of a huge hole some years ago and now have completely cleaned my credit file, with the last default coming off a year ago. However, i know very little about IVAs and am finding it a bit frustrating that he ever entered into this now i have read the agreement. Thanks for your advice about the thread, i will see what happens.
• Oh and thank you for the welcome :-)