posted by on Oct 11
phil o asked:
As i said in my previous question i am on a Debt management Programme with LA Debt. All is going ok and the phone calls have stopped from the creditors. However, i’ve had to include another big debt which has taken me to cc £20000 of debt now. LA Debt have re-arranged the plan f.oc which was good but now they are suggesting an IVA. Its been explained to em and i’ve looked on their website (www.ladebt.co.uk) it all seems to good to be true. Can i really pay £212 per month for the next 60 months and be ut of debt.
i know this is done under a government scheme under the Insolvency Act. I’m going to go ahead with it unless any one can suggest otherwise.
As i said in my previous question i am on a Debt management Programme with LA Debt. All is going ok and the phone calls have stopped from the creditors. However, i’ve had to include another big debt which has taken me to cc £20000 of debt now. LA Debt have re-arranged the plan f.oc which was good but now they are suggesting an IVA. Its been explained to em and i’ve looked on their website (www.ladebt.co.uk) it all seems to good to be true. Can i really pay £212 per month for the next 60 months and be ut of debt.
i know this is done under a government scheme under the Insolvency Act. I’m going to go ahead with it unless any one can suggest otherwise.
October 11th, 2008 at 2:23 pm
Hi, yes you really can be debt free in 60 months. Just don’t default on your payments. I have an IVA and I also work at an Insolvency Practitioners - ironic huh! It is the best thing ever. My husband sorted it out for me and found the company to go through as I didn’t want to do it through work. It was either that or bankruptcy and I didn’t want to go there. Providing the creditors agree to the proposals then you should be laughing. Good luck and I hope it works out for you. If you want any advice, either personal or professional just send me an email.
October 11th, 2008 at 10:20 pm
Unless you own a house go bankrupt and get rid of the parasites who profiting from your situation.
October 12th, 2008 at 12:20 am
Hi Phil, I was going to say email me as don’t want to talk about this in public but seeing as the first answer was by my wife I think it is well and truly public now!
October 12th, 2008 at 5:56 am
5 years, during which time you face same restrictions as a bankrupt.
5 years during which time if you get a windfall (or heaven forbid your parents die leaving you their house) it goes to your creditors.
5 years of having someone else telling you how much money you have got to spend each month.
I did it for 3 years as a bankrupt under old rules, it aint fun.
and at the end, you can get NO credit because you have an IVA on your record. and the payments to that stay on for another 6 years, so forget credit for the next 11 years..
does it still seem such a good idea now………………….
October 14th, 2008 at 4:50 pm
An IVA is VERY restrictive but yes, you can write up to around 75% of your debt off after 5 years. However, after that 5 years, your credit score will still be bad and it will stay that way for around another 3 years.
Any bonuses you get at work have to be paid into the IVA as do any inheritance or windfalls you have. If you get a pay rise, your IVA payments increase too. If you think you can hide those sorts of things from them, think again!! They ask to see all sorts of things on a yearly basis.
Basically, they want as much as they can get out of you. Speak to a company called Thomas Charles (they are on the internet). They are excellent and advise you on what you can be paying each months and will send all your details to an insolvency practitioner.
Good luck!
October 14th, 2008 at 11:09 pm
Hi
With a dmp you will pay back all that you owe and interest, unless creditors agree to freeze it, in an iva your Ip will put together a proposal offering what you can realistically pay and still live in the meantime.There is a meeting at which 75% of creditors have to agree, but this is done generally by post or fax and you do not attend They run over five years and at the end any debt left is written off. During this time you cannot have any credit unless allowed by your Ip (though you shouldnt want it) in a dmp creditors can still chase you and can change their mind at any time.In an iva you are protected and they cannot change the agreement or chase you.
Have a look at this website ,it has been invaluable to those considering an iva or any debt problems. There is a forum read the posts and get an idea of whats entailed and ask any questions they are always answered.
Good luck and all the best.