Help!

[jgd]

I have almost no equity in my home (mortgage £1108 pcm), I have unsecured debt to the tune of £30k and have recently been contacted by the CSA asking for over £30k in arrears payments due to my ex claiming benefits and not working for a good number of years. The CSA say I should have paid more than I have been. If I were to apply for an IVA or bankruptcy, would the CSA 'debt' be included in the proceedings and reduced at all? I'm struggling with debt as it is but the monthly amount the CSA are now demanding will force me onto the benefit system and they seem unwilling to negotiate a lower amount for a longer term. Help!

[jamesfalla]

Hi jgd

Unfortunately CSA debt can not be included in an IVA.

If you have little or no equity in your house, it may be sensible for you to consider Bankruptcy. Again, the CSA debt will be protected. However, you would have non of your other debts to contend 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

[MelanieGiles]

Hi jgd

It could be possible for you to propose an IVA taking account of your CSA arrears payments, so long as you could service both sets of creditors from your disposable income.

You will need to make the CSA aware of your other creditors, so that they understand that all debts have to be serviced. I believe that the CSA will want you to pay in the region of £500 per month, so that will need to be taken into account alongside your other household income, to work out whether you have any disposable income left to offer to your ordinary creditors.

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