Considering an IVA

[brokenreason]

Basically my wife and I have been struggling with our debts now for about 5yrs, in that time we have had two small children moved across the country for my new job and found that our debt has grown as costs and needs for the kids spiraled out of control.

I've read about IVA's and I've been reading here for the last hour or so and so far it seems like a possible alternative to just struggling on.

Our debts, without digging through and getting an exact figure are pretty much as follows
HSBC Overdraft £1500
HSBC Loan £19000
HSBC Credit Card £5300
Cahoot Loan £3000
Cahoot Credit Card £500
Capital One Card £1000
Capital One Card £1200
Littlewoods £2200
Great Universal £500
Simply Be £600

My monthly income for a full time job works out at £930 after tax, with £395 rent and probably about a £200-300 needed for living costs and other bills such as elec/water.

If I said £300 to be safe, would £230 be a good enough total for an IVA and looking at my creditors HSBC is my main one, are they likely to refuse and scupper the deal. As my main concern is a refusal and suddenly they all want their money yesterday and I have bailiffs knocking on the door.

Oh and another concern is the fact my employer is my mother, would this also cause me problems, I ask as that fact pretty much wrecks any payment insurance, even though my loan has £5000 worth of cover on it so I'm wondering if an IVA is also not possible due to that?

Any help would be greatly appreciated.

[iva experts]

Welcome to the Forum Brokenreason,

As you stated HSBC are a prodominant creditor, they hold 72% of your overall debt. HSBC are different from other creditors they ask (where they are prodominant) for a minimum dividend of 40p/£.

In your case you will need a disposable income to be c£335-350. You mentioned your income but does your wife bring home any income (inc Child Benefit & Tax Credits etc)?

When you are calculating disposable income be sure not to include any monthly minimum payments that you are making, it should only be monthly income minus living expenses (food/bills etc).

Your mother being your employer should not be a problem, can you provide payslips? or a letter of employment?

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[brokenreason]

Hi thanks for the quick response, and yes I forgot we get a small amount of working tax credit about £30 a month, and Child Tax credit for about £280 a month, so yes we could easily afford the £335-350 a month.

I also have payslips, so could prove earnings.

Looking at your info, I think I'm going to have to go and work out my exact position, and figure out exactly what my disposable income is, but this does seem promising.

[iva.com]

Hello Brokenreason,

If you are considering an IVA you might find www.IVA.com useful. We maintain a list of IVA firms and Insolvency Practitioners and publish client reviews of their services.

You can also apply for an IVA firm to represent you through our online application function.

Good luck with finding the right solution.

Kind regards,
Terry Balfour
IVA.com

IVA.com - The IVA Comparison Site
100s of reviews, All IPs and IVA firms rated.

Use our IVA firm comparison tool to find best IVA firm for you:
http://www.iva.com/iva_comparison_1.asp

[johnpaul]

can i ask how old are the debts with hsbc as i have debts with hfc household bank which is part of hsbc some creditors eg hfc bank will not do a iva unless the debt is over 12 months old its there policy might be worth asking melanie giles or andy davie on this

JOHNPAUL

[MelanieGiles]

If you could afford those minimum payments, and IVA could work for you, but be careful of entering the trap of making figures fit just to achieve a minimum dividend. This is catching a lot of people out at the moment, who do not correctly think through their budgets before presenting IVA proposals.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp