IVA Advice

[Dee8214]

Hello can someone please help me with the following:-

I am currently in debt management with credit card / catalogue and loans to the tune of £ 26k in addition I have approx. £2k in payday loans and a car on finance which I am struggling to pay. I am considering IVA or bankruptcy as I feel like I;m drowning, I cant sleep, I'm worried all the time and just cant cope.

What are the implications of either an iva or bankruptcy I've no assets. Is there a 'best company' to use to guide me through this?

[Debt Camel]

Re: IVA Advice

IVAs are meant for people with assets, if you don't have any bankruptcy is probably better - it's over sooner and it can't fail! See https://debtcamel.co.uk/hard-choices/iva-vs-bankrutcy/ for a comparison.

Can you manage without the car? If it is unaffordable, you will probably have to... Can you say more about this car finance, is it PCP or HP, when does it end, how much are you paying a month?

Which DMP company are you with? How much are you paying a month?

[Dee8214]

Re: IVA Advice

IVAs are meant for people with assets, if you don't have any bankruptcy is probably better - it's over sooner and it can't fail! See https://debtcamel.co.uk/hard-choices/iva-vs-bankrutcy/ for a comparison.

Can you manage without the car? If it is unaffordable, you will probably have to... Can you say more about this car finance, is it PCP or HP, when does it end, how much are you paying a month?

Which DMP company are you with? How much are you paying a month?

Thank you for the reply, I pay £ 209 per month for the car, its on HP I took it for 5yr in February 2016 . It would be difficult without a car, I use it to get to work and have a teenager and elderly parents who tend to rely on me but could be doable. The DMP is £ 100 per month Stepchange.

[Debt Camel]

Re: IVA Advice

Sorry lots of questions:
How old is your teen?
Have you had a lot of payday loans?
how long has your DMP been running - have StepChange not talked to you about your other options?
have you looked at whether you could reclaim any PPI? don't use a claims firm, you need every penny you can get back

Your payday loans - I suggest you cancel the CPAs for your current loans, tell StepChange you have these and want them added into your DMP, then have a look at making affordability complaints about these, as it sounds as though you should never have been given them. See https://debtcamel.co.uk/payday-loan-refunds/.

Will you be able to manage the DMP and car finance if the payday loans aren't there? If you can't, then it may be that the car finance is simply more than you can afford. Could your parents help you with the cost?

In bankruptcy or an IVA, a car on car fiance my be repossessed by the finance company, but some are happy for you to keep it if you carry on with the payments. If these paymentsa re just too high, this doesn't really solve your problem.

Just to check, you said you had no assets, so I assume you are renting?

[Dee8214]

Re: IVA Advice

Sorry lots of questions:
How old is your teen?
Have you had a lot of payday loans?
how long has your DMP been running - have StepChange not talked to you about your other options?
have you looked at whether you could reclaim any PPI? don't use a claims firm, you need every penny you can get back

Your payday loans - I suggest you cancel the CPAs for your current loans, tell StepChange you have these and want them added into your DMP, then have a look at making affordability complaints about these, as it sounds as though you should never have been given them. See https://debtcamel.co.uk/payday-loan-refunds/.

Will you be able to manage the DMP and car finance if the payday loans aren't there? If you can't, then it may be that the car finance is simply more than you can afford. Could your parents help you with the cost?

In bankruptcy or an IVA, a car on car fiance my be repossessed by the finance company, but some are happy for you to keep it if you carry on with the payments. If these paymentsa re just too high, this doesn't really solve your problem.

Just to check, you said you had no assets, so I assume you are renting?

Thank you

My teen is 15
Payday loans x 4 £ 1750.00
DMP been running 3yrs
Unfortunately parents cant help
Yes I rent
I do think that if I got rid of all the PDL's I would probably be able to manage better, though I don't know whether the car finance company will allow me to keep the car if I restart the payments as there's two payments in arrears.

Thanks for the pdl refund link its definitely something I will pursue.

[Debt Camel]

Re: IVA Advice

OK, with a teen at 15 you have to look forward to a time when you are not getting child benefit or child tax credit which will make your position worse. Not good news in a 5 year IVA. Nothing you have said suggests that an IVA is a good idea to me.

I suggest you talk to StepChange about bankruptcy. iI doesn't sound to me as though the car as affordable unless it is the only way you can get to work.

Bankruptcy fees are high, but getting any money back from payday loans may be able to help with these. Do cancel the CPAs for the current payday loans and get your life back under control.

[Dee8214]

Re: IVA Advice

OK, with a teen at 15 you have to look forward to a time when you are not getting child benefit or child tax credit which will make your position worse. Not good news in a 5 year IVA. Nothing you have said suggests that an IVA is a good idea to me.

I suggest you talk to StepChange about bankruptcy. iI doesn't sound to me as though the car as affordable unless it is the only way you can get to work.

Bankruptcy fees are high, but getting any money back from payday loans may be able to help with these. Do cancel the CPAs for the current payday loans and get your life back under control.

Thank you will do