Could we do an IVA

[cmj]

we have about 150,000 of unsecured debt mainly loans and credit cards. Also 190,000 mortgage with probably only about 25,000 equity.We bring home about 5500 a month, and have outgoings of around 3500 which includes mortgage but excludes unsecured debts. Could we do an IVA and what are the consequences of doing so, as we would like to move property in a few years time?

[kezza]

Hi cmj

you will need to post details, income, necessary outgoings, how many creditors etc then an expert can advise

[MelanieGiles]

Hi cmj and welcome to the forum

It would seem that an IVA is a possible solution for you, as you can make substantial repayments to your creditors. Do make sure that you have listed out all of your expenditure - I have a format on my website which you might find useful - and have taken account of contingency items such as house and car maintenance, medical expenses, and miscellaneous items.

You will also need to consider an equity release during the voluntary arrangement, and this is usually carried out during the final year.

It will be fine for you move property whilst you are in an IVA - so long as this does not affect your ability to make your monthly contribtions or release any equity which is held in trust for your creditors. If you can advise me of your plans in this regard, I can advise further.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jamesfalla]

cmj

From what you have said, an IVA certainly seems possible. You have calculated that you have £2000 disposable income each month. Even if you have been over-optomistic and this is only £1000-£1500 i would say that you still have a good chance of an IVA

Beware that your creditors will probably still want you to see if you can release equity from your property in the final year.

I suggest that you speak to 2-3 different companies and get their views. Then go with the one you feel most comfortable with

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk