Resolved Question

If you have unmanageable debt, is an IVA a good option?

An IVA - individual voluntary agreement - where I pay £200 a month over 5 years and whatever is left is legally written off is something I am considering as Halifax, RBS and MBNA keep threatening me but also say - 'call us- we'll help you' - when I do - I find myself in a worse situation as they just threaten me more and more. Has anyone gone through IVA - I just want to keep my home - and manage to try and get my life back. I have no problem paying, but the interest is just so over the top. Thank you.

Best Answer - Chosen by Asker

Some friends of mine are in an IVA at the moment,as you already know it's a 5 year commitment,but the interest on their debt is frozen and they say that the relief at not having the stress of dealing with threatening letters and phone calls, is in their opinion,well worth it,and like you they are able to make the agreed repayment.
I can't say one way or the other if you should use an IVA but I do know that they are a lot happier now, knowing exactly what their monthly repayment will be,and that it will not change.
If it's any help they went through ivanetworks.com
Good luck.

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Other Answers (2)

• It can be, though I'd think very catefully beforehand and consult with the CAB.
• The main thing here is that you need help from a competent third party in managing your debts, whether that be the local CAB or an insolvency practitioner. The CAB is always free and a good money advisor can get to grips with yor creditors and get decent arrangements in place but equally you have to be pro-active and committed to whatever is on the table. An IVA is okay but will cost you ( the insolvency practitioners have to be paid ! ) and part of your payment goes to them. The problem with IVA's is that they can be a financial strain as they have to be paid for 60 months and the insolvency practitioner in charge doesn't always assess you correctly as to adequate disposable income and that makes payment that much harsher. Plus if you default on an IVA, your bankruptcy may be automatic. Personally I would see the CAB for initial advice and take it from there. The main thing is to get interest on all accounts frozen if possible. And don't be bullied by your creditors .... they can be guilty of harrassment if they persist in threats. Every debt situation is solveable, you just have to take the right road.

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