First post and worried

[worriedandy]

Hi All

Like I'm sure most are at this point, we have about £80k worth of debt - mainly the result of 2 panic 'reduce your monthly fee to one easy payment against your home' loans.

I've been thinking about IVA for a while and have some questions

- Does the IVA affect my mortgage (2 years into a 5 year fixed)
- What happens month to month now, before the IVA, I have a casual 2nd job that has seen us through food and fuel the last couple of months but this is not guarunteed income - it's looking like mid-august we'll have no money for food (with 3 kids!)
- Do I have to be 'bad debt' to get and IVA - we haven't (quite yet) defaulted on any payments, will the creditors not accept the idea unitl we have?

Any thoughts / help would be appreciated

Thanks
Andy

[Viki.W]

Hey Andy, welcome to the forum. Can I just ask if the two loans are secured? If they are you can not include them in an IVA I'm afraid. Viki X

[Viki.W]

Andy, just to answer some of your other questions. Don't worry about not yet defaulting. I was the same, I used credit to pay credit so I hadn't missed a payment but was obviously insolvent.

How much equity do you think is in your house?

When calculating your disposable income, your IP will use your full time job's wages if your other job is to stop.

I would contact an IP as soon as you can to go over ALL of your options. I'm sure an expert will be along to advise you. Good luck and keep posting. Viki X

[MelanieGiles]

Hi Andy and welcome to the forum

The main criteria for entry into an IVA is that you are insolvent - and this means not being able to service your monthly repayments to creditors as they fall due - particularly without reverting to additional borrowing. It rather sounds from your post that this may be the case with you, so it would be a good idea to seek professional advice from an insolvency practitioner at an early stage to see what options there are available to you.

If you do decide to enter into a formal arrangement plan, make sure that your payments are adjusted for when your mortage comes off the discounted rate in two years time.