Help Please.

[popeye9million]

hi all,

Some advise please.

My wife is almost 40,000 in debt. This is a large amount i know but its not just her - i got a terrible credit history and cant get credit so she has got it for us both!

We were coping with this debt until we recently bought our first house on interest only, and now we are effectivly living on the remaining balance on the credit card which will soon run out. We are also already in negative equity with the house and it probably going to get worse.


If we were to IVA, would it be best if we applied for a joint one, or would it be better if she applied in her name alone (sounds callous i know).


Most of the Debt is with TSB, and up to now she has not missed one payment but as i said earlier we are only now coping on Credit card and this will certainly end and we will not be able to meet the payments.

Any help would be much obliged.

Many thanks

[charlotten]

Hi

My husband and I have an IVA although 80% of our debts are in his name.
At the moment we are struggling to pay our IVA contributions.
I would suggest, and this is my opinion, that you put the IVA in the name of your wife as that way they will only take into consideration what she earns and your contributions will be lower.
An IVA is extremely restrictive and you will not be allowed to vary your contribution if your mortgage, council tax, bills etc change.

Don't use Debt Free Direct, we are with them and they are horrible.
If you do want an IVA use Melanie Giles or Myvesta. Myvesta are not for profit and have no ulterior motive.

I understand that being in debt is horrible but I wouldn't do an IVA because if anything goes wrong and you need to take a payment break then you will be liable to the IVA rules and your IP can make you bankrupt and take your house.

Try a DMP (debt management plan) which will allow you more flexibility and you can take the debt over a longer period of time and this will accommodate normal changes in your life and work etc.

These are my opinions as I wish I had never, ever taken out my IVA. The restrictions are vile and any slip up can result in bankruptcy.

If you do decide an IVA is for you please please shop around and find someone who is personable and doesn't charge so much.

Take care.

Charlotte

[Viki.W]

Hey popeye9million, welcome to the forum. There is no such thing as a joint IVA, it is individual so your wife would need to apply herself. Your income and expenditure would be taken into account. If your wife has more than 75% of her debt with TSB then it may not be possible to get an IVA as TSB would prefer to arrange a payment plan themselves. Please wait for an expert to advise you. Viki X

[luluj]

How many lines of credit does your wife have ? If not more than 3 then a IVA may not be possible, also if TSB have more than 75% of the debt it may not be viable - sure one of the experts will let you for definate, but at least you have woken up now and am thinking about doing something positive!

Keep focused!

[Moneystinks]

Hi, I would contact Melanie Giles or Ian Millington who both post on here. I personally opted for Melanie as she posts on a regular basis and she gives no nonsense unbiased advice - she is a true professional.

Good luck.

X

[freelili]

You need to do something right now, I used credit until it was all used up, its much more stressful that way.

Make a note of your income and expenditure, realistic but no frills. Please make sure you include incidentals like dental etc. Then phone Ian and melanie and a couple of others to get the feel for it all.

I know this is a stressful time for you but do consider all of the other options also. Youre not alone and are amongst friends here.

good luck

[Soulgrowth]

Just wanted to say 'good luck' ... and as Lily says, now is the time to start addressing the situation ... you have taken a huge leap forward by posting to the Forum ... start looking into your options now whilst you still have some control over things

Debbie

[MelanieGiles]

As the other posters have already confirmed, you cannot do an IVA if you have no debt - but you can help your wife to fund hers. If you know that you are only able to maintain your contractual repayments to creditors by digging into your credit card balance, you are insolvent and are effectively incurring more credit in the knowledge that you will not be able to repay it. Please therefore take some professional advice from an insolvency practitioner before things get too bad.

[facingittogether]

hi

i am not a expert but like others have said i reaaly think you would benefit from getting some professional advice. everyones circumstances are different and a solution for one individual may not be the correct solution for another!

for me and hubby personally a iva has been an absolute god send, yes it is restrictive in you have to live to a budget but the plus side is that you are protected from creditors hassling you and no more interest is added to the debts!

melanie giles is our ip and she and her team give honest and unbiased advice. i would have not hesitation in recommending her team to anyone with financial difficulties!

good luck and let us know how you get on!

barb x