Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By debt free at last
#217571 Well after 6 years I have just received my certificate to confirm that my IVA has now completed successfully.
I have not posted before as I didnt want to post something and then find something had gone wrong with my own IVA.
Ive often read items on this site and another similar site but not wanted to tempt fate by posting.

If I can I would now like to offer any help I can to others as I know only too well what a stressful time being hassled by your creditors can be. It seems like there is no way out but after 6 years I am now debt free (I did owe £65,000 on cards and loans which would have taken for ever to pay off) This has now all gone.

I still clearly remember what it is like to get the sickly feeling in your stomach when the post arrived and sleepless nights wondering what was going to happen next.

My personal situation was that I had some equity in our property and we excluded this from the iva arrangement by agreeing to make and extra 12 months payments on top of the normal 5 years. (this worked out at approx £3000 in additional payments)
This is well worth asking about as for us this turned out to save us a lot of money as now that equity is approx £80,000.
I'm surprised Ive not seen other people commenting about this.

Anyway, I kept up with the payments each month and can now look forward to making a fresh start.

One thing I would firstly say to anyone that is worried and concerned over their debt is not to hide away from it. Thats what I did and I was borrowing to just keep up with my credit card and loan repayments. Its not worth it and you need to tackle the problem straight away.

Also, please put the problem into perspective. Ive had so much sad news over the past few years that it made me realise that if you have your health and a close family this is far more important than worrying about debt. It has made me realise how lucky I actually was in the first place.

I'd like to offer any advice I can to anyone thinking of entering into an IVA and share any knowledge ive gained through my experience. (Whether this be about the process or annual reviews etc)

If you are not yet in an iva try not to get upset and let your creditors bully you into paying more than you can afford. I remember how nasty and what a lack of understanding some of them had. Its important to be firm and only pay them what you can afford. Some will not initially freeze interest but eventually most of my creditors had done so after many letters. (In the end I would not deal with them over the telephone, everything was in writing)

Final point - when you complete your income and expenditure include absolutely everything you can think of - things you may not think of such as school trips for the children, clubs, newspapers etc etc. Remember you are still able to lead a normal life (just without the hassle from your creditors)

Thanks everyone (sorry for rambling!)
Anyone with any questions just let me know.
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By JaneClack
#218060 Thank you for your comments - they will help quite a few people I would have thought.

Your comment re the equity clause was very pertinent as now we have the Protocol IVAs and these are designed that no-one should lose their house if they cannot remortgage.

What generally happens is the property is valued at the beginning of the IVA before the proposals are put forward. Now, the creditors want compensation for as much of the equity as is possible and that is generally what goes out in the proposals. However, even creditorsare pragmatic and it is extremely unlikely that anyone in this situation (or any at the moment) would be able to raise more than 85% loan to value. So if it is less than that then it is suggested that 12 months payments be made in lieu.

They generally want the property re-valued in month 54 of the IVA in the hope that Madonna has moved in next door and the house price has shot through the roof. Then the client would be asked to try to remortgage at least three times to release as much as they could but if not then the 12 extra payments come in.

This has assuaged many people's fears as that is the general reason people are frightened of IVAs..... not realising that charging orders can happen in a DMP!
By smitty
#219354 Hi, I'm new on here and found your post really interesting.
We're thinking of doing the IVA thing but then someone said I should go for Bankruptcy. My husband is self employed though so this is making me go more towards the IVA.
What are your thoughts re IVA or Bankruptcy. I own a buytorent house and rent a property that we live in. We have no equity at all in our house as the market plummeted just after we bought and I only have a corsa which isn't worth much over 1k. So in conclusion I have no assets at all.
Any advice would be really appreciated.
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By JaneClack
#219380 ....well if your "buy to let" property is not bringing in more than you are paying out on it, it will be regarded as purely an investment and the creditors would want you to get rid of it.

As your husband is self-employed he may not be eligible for a protocol IVA as many companies will not do these. They may well propose an IVA but not the one that can guarantee to safeguard the home you live in - but as you do not then it is not a problem.

Talk to National Debtline or Payplan or CCCS.