IVA help in Durham

An IVA works the same way near the university, in a village like Brandon or Bowburn, or further out in the county. What changes is the detail: how much your home is worth, how you get to work and where your income comes from.

Do low house prices in the villages affect an IVA?

They can, in a way that often works in your favour. Many terraced homes in the former colliery villages around Durham have modest values, and if you bought in the last ten or fifteen years there may be little equity once your mortgage is taken off. In an IVA, that matters because homeowners are usually asked to release equity near the end of the arrangement.

• If there's little or no equity, the final-year review is unlikely to ask anything of you.
• If your home is worth less than your mortgage, you won't be asked to release equity at all.
• If values rise during the IVA, the review uses the value at that time, not the value when you started.

It's still worth having a rough idea of what your home is worth and what you owe on it before you speak to anyone. Our guide to IVAs and your home explains the review in detail.

Tax credit and Universal Credit overpayments

Overpayments are a common part of the debt picture in County Durham, often left over from the move from tax credits to Universal Credit. Benefit and tax credit overpayments that weren't caused by fraud can usually be included in an IVA.

Deductions from your ongoing benefits

The rules on whether the Department for Work and Pensions can keep recovering an overpayment from your ongoing benefits during a debt solution are complicated, and they differ between types of debt and solution. If deductions are being taken from your Universal Credit, tell your adviser at the start, and make sure your budget uses the amount you actually receive after deductions.

Universal Credit advances

An advance is repaid through deductions from future payments. Include it in your list of debts so the full picture is clear, even if it ends up being handled outside your IVA.

Working for the council, the NHS or the university

Public bodies are among the biggest employers in and around Durham, including the county council, local hospitals, the prison service and Durham University. A steady public sector salary makes an IVA easier to sustain, but a few things are worth checking before you apply.

• Declaration rules: some roles, particularly in finance, policing and the prison service, ask staff to report formal insolvency. An IVA doesn't automatically put your job at risk, but not declaring it when required can.
• Pension contributions: contributions to the Local Government Pension Scheme or NHS Pension Scheme are normally accepted as a standard payroll deduction.
• Fixed-term contracts: common in universities and the NHS. Your payment can be reviewed if a contract ends.

Council tax across County Durham

Since 2009, almost all of County Durham has been covered by a single unitary authority, so your council tax is paid to Durham County Council whether you live in the city or a village twenty miles away. Arrears can usually be included in an IVA, but your current bill must be paid on time. The council runs its own council tax reduction scheme for people on low incomes, so check whether you qualify before your budget is set. Darlington is the exception, as it has its own council.

Renting from a housing association

A large share of homes across the county are owned by housing associations such as Believe Housing and Livin. If you rent from one, your landlord won't be told about your IVA and your rent is protected in your budget. Rent arrears need care, though. Keep paying your full rent and get advice early about any arrears, because they can lead to possession proceedings in a way most other debts can't.

Students and recent graduates in the city

Durham has a large student population for its size. If you're a student, an IVA is rarely the right fit, because your income is limited and may change completely once you graduate. Student loans can't be included in any debt solution. Overdrafts, credit cards and Buy Now Pay Later balances can be, but a Debt Management Plan or a Debt Relief Order is usually a better match while you're studying. Your university's student support or money advice team can also help.

Getting about: travel costs in a rural county

Buses between villages can be infrequent, and many people need a car to get to work. If yours is essential, its running costs and any reasonable finance payments go into your budget. Use your real figures for fuel, insurance and servicing. Underestimating them is one of the most common reasons an IVA budget comes under strain.

How to get help without travelling into Durham

Our team is based in Newcastle, and enquiries are handled by phone and email, so there's no need to travel. Send the form at the top of this page and choose a time that suits you. The enquiry is free and you're under no obligation.

You can also get free, impartial advice from Citizens Advice County Durham or through MoneyHelper. To read more before you get in touch, see how an IVA works or compare every debt solution.

Questions from across the county