Hi,
I am new to the forum, therefore please help me with your valuable answers. I currently earn £1980 a month but I have a debt of £52000 which is spread across 3 loans, 9 creditcards and 2 overdrafts, which I accumulated for the past 5 years. most of this borrowing were due to my education and a failed business. So far I had managed to survive by keeping up all the payments by using one card to pay for another or utilising maximum from my earnings. This situation put me in to more and more debt and it looks like I will never be able to get out of this mess. I feel now I reached the end of this borrowing and for past few months I was deeply worried about keeping up the payments. I feel that I can no longer carry on like this and I want to get out of this and want to have a fresh start.
I have no unnecessary spendings and I blieve that I can control my life for the next 5 years. But the question is that I live with my wife and she doesnt work, therefore I need to bare all the costs. I also have 2 hire purchases worth £160 and my disposable income after paying the hire purchase is just over £180. Therefore I am not sure whether I will be eligible for an IVA or I will have to declare my self bankrupt. Please give me your thoughts.
It will be difficult to get an IVA for payments of £180 per month with detbs of £53,000. Is there any reason why your wife does not work, and if she is not able to due to health reasons is she entitled to any benefits which could help?
Do you also need to have two hire purchase agreements - presumable these are for cars? If you could return one of these then an IVA may become a viable option, but it is important that you understand all options currently available to you, which an insolvency practitioner will be able to explain.
Thanks Melanie,
Well, my wife is pregnant and it is unlikely that she would want to work after having the baby. One hire purchase is for my car which is very important for my work, the other one is for a TV, which I hope I can pay off and would be able to save another £50. is there any amount that the creditors would agree on ?
I cannot answer that here, as I do not know the circumstnaces of your particular case, but IVAs are based on affordable payments, and not payments meant to fit an IVA criteria. And differing firms set differing criteria, so you might do well to shop around and talk to a few insolvency practitioners for case specific advice.
Check out www.iva.com where there are reviews of IVA companies. Give one of them a ring (Melanie is a good one to try), they will explain all the options open to you and advise you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
