can we take out a iva ?

[bike instructor]

i have just gone self employed, but do not earn enough to live on as yet, so i recieve working tax credits. my wife recives disability living allowance and does not work.
we have debts over £15000 and most are in my wifes name as credit was given to her based on her dla as a income
we are now finding it hard to meet repayments of credit cards and car/bike loans ect, untill my business takes off
we are making arranged payments to most of the credit cards, but still pay full amount on the car and bike
the credit cards keep phoning saying they want more and more, but we just havent got it
can we take out a iva to solve this problem even though most debts are in my wifes name and she is reciving dla??

[kallis3]

Hi bike instructor and welcome to the forum.

I am not sure about your question, but there are a lot of experts on here and I am sure one will be along shortly to answer your query.

[MelanieGiles]

An IVA will not work for your wife if her only income is from DLA. Have you thought whether bankruptcy proceedings might be a better option for her, in which case you may be able to continue to service your own debts and see the business established.

[bike instructor]

so my wife goes bankrupt
this will not affect me i guess, i hope, as i can not be bankrupt for my job, i am a sole traider, but my job has conditions of no court proceedings.
but we do have joint current account which i use o pay some of my bills, and i do need a bank account and cheque book.
we live in rented accomodation
no dependants (all grown up)
my wife has a car (disabled tax ect) but this is bought through a loan, not on the disability scheme.
my work motorcycle is bought throug a loan in my wifes name.

the dhss did lower her money after a major opperation to her spine saying she does not need 24hr care any more, only 12 hour care
and this had major impact on our income.
so the only job i can do is a flexable self employed job so i can still look after her when she has her bad days.

[MelanieGiles]

She is a lucky lady having you to look after her, and I suggest that you give the whole process much thought before making a final decision. Your wife's bankruptcy is unlikely to affect you unduly, but if your motorcycle was purchased via a loan in her name, there may be some argument that the asset forms part of her estate. Which one of you has been funding the repayments and how much is the vehicle worth?

[bike instructor]

the bike is worth £6000
butafter a accident when the bike was written off, i bought it back from the insurabce company, the loan company did not want the write off payment from the insurers
therfore i guess the bike is now owend by me????
the bike has always been registered in my name
it was a unsecured loan my wife took out on the bike and not hp
thanks

[MelanieGiles]

Then I would say that the bike was safe from your wife's bankruptcy.