Hi, I have a few questions to work out whether an IVA is the right way to go.
My husband and I have joint debt of about £60k - the majority is in his name with 1 loan in joint names and I have 1 credit card. We also have a joint secured loan on the house. We have 1 child and 1 on the way. So my questions are : -
1)Can just one of us apply for the IVA?
2)How does the secured loan affect the IVA?
3)If we have a "joint IVA" What will happen when I go on maternity leave and our income decreases?
4)Will I have to go back to work after maternity leave even if childcare costs are more than what I will earn?
5)Does the budget in an IVA allow for things like going on holiday etc?
6)Will we be able to move house during the IVA period?
1 Yes one of you can apply for an IVA - and I would have to say that based upon the facts you have presented, it is unlikely that an IVA would work for you in any case.
2 The secured loan will be covered by the asset it is secured against. In the event of any shortfall, this will be included in the IVA.
3 Your payments will need to be staggered over this period to take account of the loss of your income.
4 No-one is going to tell you to go back to work - that will be a choice for both of you to make.
5 A holiday budget will not be possible to expressly request under an IVA, but a lot of people manage to save up for a modest holiday from their overtime monies or just by making economies within their household budget.
6 Yes - so long as this does not affect your ability to continue with your IVA payments. If it does, then the IVA may well eventually fail.
The best way to get good advice as to whether an IVA is suitable for you would be to contact an insolvency practitioner directly.
In certain circumstances the single debt which is a joint one might be possible to do an IVA for it on the basis that your joint finances could not cope with you having to be responsible for it. Your best bet is to speak to an Insolvency Practitioner as soon as possible and he/she will advise you of the most appropriate solution. Visit www.iva.com for reviews on IP and speak to 2 or 3. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
If you did do just one IVA, be aware that the other one would be chased for the whole of the debt on the unsecured joint loan.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
