an iva the best option for us?

[sjw]

my husband and i have approx55000 debt with barclays direct line virgin egg and tesco barclays being the main creditor we earn about 2500 a month paying 1300 to loans and £1000 mortgage our mortgage is a 50% shared ownership and have no equity. is an iva the best option for us. also what do they look at at the yearly reviews.

[catullus]

The most important question that you need to ask yourself is why don't you want to enter bankruptcy?Certainly the loan repayments that you are committed to are unsustainable and you do need to do something. As you haven't got any equity in your property bankruptcy is unlikely to have a significant impact on you and the monthly amount that you will have to pay your trustee in bankruptcy will almost certainly be less than you would have to pay in to an IVA and would be for a shorter period.
There are many reasons why you may not want to be made bankrupt, however, but only after you have considered this route really carefully and decided that it isn't right for you can you say that an IVA would be right for you.
On the basic figures that you have given I think that a sensible IVA could be proposed but don't think that it would be an easy route, its not, and some reading of the posts on this forum will give you a good idea of the issues involved.

[aguise]

Hi sjw
Can you say if the debt is all joint or just yours or your husbands.Also what do you have left after normal living expenses but dont include the debt payments and also is all the debt unsecured.
At yearly review you would normally be asked for wage slips and bank statements and proof of any expenditure increases. Some vary as to what they want. They will make sure you are paying the right amount, with an iva increases in income are usually paid 50% to the iva and 50% you keep, but this may vary between proposals and it is just extra paid in it doesnt finish any earlier , they can also look at rises in your expenditure as some of these can be offset against your income increases, though this can be done at any time.It is a review of your iva which they have to carry out.
If I have got any of this wrong someone will correct me but hope this explains a bit.

Ang

[sjw]

debt is not joint we both owe about 25ooo each really dont want to go bandrupt dissposable imcome in not paying debt would be about 250.

[catullus]

You've got quite a good mix of creditors for an IVA but at £250 a month I reckon you are just about on the borderline, assuming that you'll be looking at offering the creditors about 40%
An IP would take you through what your allowable expenditure would be and that might end up as more or less than £250 monthly contribution which might decide it for you one way or the other.
Do take on board what I said about bankruptcy and actually research it before you make a decision. I'm not saying its the best route for you, merely that you should understand why it would not be right for you.

[sjw]

thanks for your reply
how much disposible income is usual?
dont want to go bankrupt because i have heard that they can make you sell your house and that it is put in local paper.
do you know what reasons an iva is usually turned down?

[aguise]

Hi again.
Please bear in mind that I am just like you in debt and in an iva so I would always say wait for other answers as well. I am not particulary good at the figures side of things. Is the 250 your joint disposable income. Though there is as such no base figure of acceptance to creditors, the generally accepted least amount is 25p in the pound. You would be best to speak to a couple of companys and see what they think the best solution for you would be .I would suggest the ones on this site a good start. You can do a joint as such iva which is two seperate but interlocking , one monthly payment income and expenditure is worked jopintly though each has to be accepted by the creditors. I have one like this and it is working well, we are paying 32p in the pound back on 52,000 debt.
Do your jobs not allow bankrupcy ?
Hope this helps a bit.

Ang

[sjw]

250 is total for both of us not sure about job i work in local health trust

[aguise]

Hi
The best thing to do job wise is to check your contract, I dont think it affects health workers. As said by catallus check all your options out make sure you understand everything, bankrupcy may not be as bad as you think, read the blogs of skippy and scardekez and zoe they give a lot of insight into the procedure.

ang

[catullus]

There is no reason why you would have to sell your house in bankruptcy but notice of the bankruptcy is advertised once in one local newspaper.
Aguise's advice about reading those blogs is sensible and I think that she is correct about healthworkers and bankruptcy.