Asked before but situation changed

[Willy Wonka]

Some advice please, I put this query on last month but the situation has changed :

My parents are debating going for an IVA. There is hardly any equity in their house at the moment and have approximately 50k worth of debt. They have an off licence business. The business is worth about £50k as it stands. It is running at a slight profit - about £100 a month.

Their montly income including tax credits/carers allowance etc is about £1900.

Their personal debt come to approximately £50,000 with a further £4,000 debt against the business.

They have worked out they would have £300 a month spare to pay after expenses.

So my questions are:

1. Would they be accepted do you think?
2. Would they have to sell the business or could a stipulation be they try to sell it and settle debts if they do???
3. If they would not be accepted what amount would they be needing to pay a month to be viable?

ANY help would be greatly appreciated! They are reluctant to do an IVA but they are treading water and have been for a while now, scraping by paying the minimum payments... Its stupid and pointless and its making them both ill and stressed AND all the family along with them. Dad thinks this is 'giving in' which is understandable but I am trying to make them realise this is the best way to get them out of this mess.

Thanks.

[lighton]

i think you should give melanie a call and explain the whole situation , im sure she will advice you of best route forward.Good luck to your parents

[Wizzard]

I wonder how much Melanie is paying Lighton .... gotta be at least 3% of net. [:D][:D][:D]

[indebtforever]

word of mouth the best advertisment of them all and costs zero!!!
but she deserves it thorough proffesional[:D]

[MelanieGiles]

When you say that their business is worth £50k, I would seriously question that valuation if they are only making £100 profit per month. Is this correct?

I am sure that an IVA might be possible for them, subject to affordability - but a better way might be to sell the business and make a substantial repayment to their creditors. I suggest that they get a proper valuation to be able to move forward.