We are now looking at taking advice to start the process of an IVA. My wife is at University and has a student loan to pay for the course and for income. Question is
Will they take the income student loan as income for our household? Will the student loan also be written off? Will she still ba able to obtain a student loan for the rest of the course, she is only in year one and has two more to go.
The other question is if we sell our home whilst we are IVA can we use any money left over to put a deposit on a new purchase or will the creditors want it? WE are thinking of downsizing when the market picks up but would need a deposit. The benefit form this is that it would free up more income to pay creditors.
The student loan should be included into the IVA for the purpose of calculating your overall indebtedness, but they are not particularly supportive of IVAs and this may stop her being able to borrow more money to cover her studies.
Do you both have debts, and if you have a property to sell why not use that money to try and offer a full and final settlement to your creditors and make a fresh start? You can always look to jump back on the property ladder once your wife has qualified and is working.
