IVA – Just going through the process

August 31st, 2013


I hope to blog all about our IVA process and how it is going to effect us – so a bit about me my IVA statement will help you understand our situation – this is just the beginning we are only at the point of my proposal being drawn up….

Currently our family of 6 consist of: me and my husband, our 3 children (eldest son has asd disorder) and my mother in law

I am writing the reasons that have led to my filing for an IVA – it has not been an easy decision but it is one I have made so that I can start again and give my marriage and children a better future.

At the moment we are living a life of paying debts before we eat or buy clothes or at some points pay our priority debts just so we can keep on top of minimum payments. I am always paying late so as to make the money go further – then of course incurring late penalty fees etc.

The situation has got worse and worse and the crux came when I realised that when the children go back to school I am going to struggle with buying uniforms – all our child benefit and tax credit money and wages are going on bills – I haven’t been able to do a proper shop for months we are literally living hand to mouth – and working to do it and also using catalogues and cards to buy things we need like a fridge and freezer when it broke or new beds when they broke or when the car failed its MOT – we haven’t had any income left to pay for anything as it has gone on keeping up with agreements and minimum payments – I am not sleeping and I am worrying all the time – the cost of living and fuel is going up and unless I commit to an IVA I see no way out of the situation.

How did I get £22,000 in debt?

It started with a credit card on high interest and then another card – just to help out with all the cost of living – supporting three children and my retired mother in law. Then with catalogues I found I could buy clothes, appliances and other essentials and pay them back monthly.

Work Reasons

I started a catering business and took a £12,000 loan with HSBC – I honestly thought this was a good idea at £250.00 a month and that the business would support it – as I was not making any wages as my business was new I used the loan to help with personal as well as business debt.

Unfortunately the catering has absorbed so much of our money that it hasn’t been viable in paying my debts as I originally anticipated it would.

Personal reasons

We have lived in our current home for 5 years since my father in law was diagnosed with a form of Parkinson’s disease and died 3.5 years ago. We moved into my husband’s family home to help care for my father in law and look after my mother in law during this awful time.

The period after the death of my father in law led us to get by on credit. Dealing with family bereavement, caring for my mother in law and 3 children hit us hard, and I had to use my credit cards to buy shopping and pay creditor bills, I used catalogues to buy essentials such as clothes as it was easy.

We also live 3 miles from anywhere and the cost of fuel and living costs especially heating bills have been tough, and having £800.00p/m worth of unsecured debt in my name to pay every month meant we couldn’t save for the next bill. We have been juggling and getting deeper and deeper in debt, a cycle we are not going to get out of. We have tried to pay everyone and I hate the thought of not paying creditors – but as soon as we think we have paid all our debts – the next round of bills come in and we are struggling again.

I understand an IVA is an extreme measure – but I can’t see any other way out of our current situation. We do not have an extravagant life style, my husband’s car is a £3000 car on HPi which he uses for work and I drive a car worth £900 to get the kids to school and go to work. We do not smoke , gamble or drink. We do not have foreign holidays and we go camping if ever we do go away. I have not been able to do a full shop for months and have not been clothes shopping to a shop for our children ever – our families have been contributing. The house is in desperate need of renovation as we have not been able to afford to carry out any improvements .

I want to be at a point of standing on my own 2 feet, without credit and moving forward in life – I see an IVA as the only option to do this.

Hello world!

August 31st, 2013

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