IVA or default?

[lootmaker]

Im in 35k debt, do I just runaway from it change my address? or shall i do an IVA how much will i be paying a month, if im on say 18k a year?

[Oneeyedvic]

Moving address will not really change much. As soon as you apply for credit (and that includes things such as gas supply and car/home insurance) a credit check will be made. You will be asked for your last 3-5 years addresses. If you lie then you are committing fraud (and can go on to the CIFAS (anti fraud) register). If you give your last addresses, there will be a link betweeen your addresses. This will allow your creditors to find you.

 

You have a choice of an IVA or bankruptcy. Under new laws (Enterprise Act) you can now come out of bankruptcy in one year (although it will stay on your credit file for 6 years - just like CCJ and arrears info).

 

You really need to go to a debt councillor - try your local Citizens Advice Bureau - they will be listed in your phone book/ Thomson Directories.

 

Do not run away or bury your head in the sand - it will not go away. BUT there is plenty of help about and there are sensible ways to deal with it.

[Didwot]

I assume you have no capial assets, because if you do they could be used in an IVA either in with or wothout monthly payments. That said it all depends on what your creditors are willing to agree to. There is absolutely no hard and fast rule, although some creditors, eg the Inland Revenue do take a much harder line than others. You do need to look at your finances very carefully, preferably with the help of a professional person. As a note of caution there are rather a lot of people who claim to have expertise in insolvency, who simp;ly do not, and can end up taking money off you, and doing little or nothing or even making things worse by upsetting your creditors,

[twiglet4frog]

start by cutting up every piece of plastic u have and stop taking out any more agreements, and start using every penny u get paying off what u have as quickly as humanly possible, dont bother with savings or anything like that, the interest u make on any savings plans are wiped out by the interest on a credit card to repay so just use all savings to pay off what u have in debt, keep a small stash for emergancies, and just cut back on anything slightly luxury. its a long hard haul of not having much fun but when u finally get it all paid off and u can buy things with cash u will be so relieved and happy

[Kathian]

I had to give up working due to illness.We have debts of �60K and my husband earns �28K.  We are going through with an IVA and it will cost us �944 a month. It is considerably less than the payments we were making and we will definitely be better off.

[GuavaJellie]

If you click this link

 

http://www.w3debtsolutions.co.uk/FAQ/index.html

 

you will find some questions and answers regarding IVA's including the period for which they exist, how costs are dealt with, and a notional repayment plan for just less than the amount you owe. Hope it is of some help.

[lootmaker]

�944 a month wow thats lot of money, only 28k income how easily did the creditors accept the IVA, did you have to attend a meeting? i thought it migh only be a couple of hundred a month?

[WoWo]

One word on bankrupcy, its true it will be gone in a year and off your record after 6 but it will seriously limit your fututre credit options in the future. You need to face up to the problem sooner rather than later as it will only get worse. The more you pay each month the quicker it will be gone and more importantly the less you will pay over all.