help

[ugo]

Hello,

My sister's husband had a traffic accident which left him disabled 5 years ago. After his accident, he was out of work for a good year and half and during that time they managed to accumulate £45,000 worth of unsecured debt by borrowing to meet their living expenses. His mother died three months ago and left him £20800. They contacted their creditors but they are not interested in reduced payments. Can you help them?

[iva_squirrel]

Hello Ugo,

An IVA or Individual Voluntary Arrangement is a formal legally binding agreement with Creditors. It allows someone who is in financial difficulty to make a formal proposal to settle his/her debts within a reasonable and fixed period - normally 5 years maximum however, you can set up a lump sum IVA.

If you set up a lump sum IVA, the amount that you pay to clear your debts will be much less than you actually owe.
If you owe money that you are unable to repay but you could make available a lump sum, it may be possible to negotiate a one off settlement with your creditors.

I hope this helps.

Regards,



For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[accgroup]

Hello

The comments of the IVA Squirrel are correct, your sister's husband could propose a lump sum IVA. He will need to speak to an Insolvency Practitioner - "IP" - for advice, providing details of his circumstances. The IP will ask for full details of ALL his debts and ALL his assets. The IP will also ask for details of his current income and expenditure.

If he can afford to make monthly payments because he has a surplus income each month it is likely that the IVA will combine a lump sum payments AND monthly contributions. However, this will depend on his circumstances.

If he contacts an IP he will be able to get a better idea whether an IVA is right for him. The IP will provide a booklet produced by R3 (The Association of Business Recovery Professionals) called "Is an IVA right for me" this is also available on the R3 website www.r3.org.uk, the IP's initial advice is usually provided for free. Visit my website below for more details and a phone number to call for further advice.

Hope this helps



AccumaGroup
http://www.accumagroup.com - One of the UKs leading debt and insolvency advice firms with over 200 employees.

[Oliver]

Hi There

It certainly sounds as though your husband in law has serious debt which needs to be resolved. Given that the debt is relatively high, I agree with the other comments made regarding your post. Your Sister and her husband should be considering an IVA.

They may be able to achieve this with a single lump sum payment based on the money that your husband-in-law has been left. However, there are also other circumstances to consider. For example, do they own a property? If so, the equity in the property will also have to be taken into consideration. In addition, as mentioned by Accuma, if they also have disposable income, this may also have to be considered.

The best thing to do at this stage is that they must speak to an experienced person about the problem. One of our advisors at Thomas Charles would be happy to have an informal chat and would be able to offer appropriate advice. Ultimately if they decide an IVA is right for them, I suggest speaking to perhaps 2-3 different people and choosing the one they feel most comfortable with.

You can access Video Clips giving additional information about IVAs at:
http://www.thomascharles.com/interview_ ... an_iva.asp

If you would like more information about IVAs, other debt solutions, or just want to arrange an informal chat, please visit us at www.thomascharles.com.

Best Regards
James Falla
www.thomascharles.com