I am a home owner and have amassed a credit card debt by 2 debtors of approximately £11000. I live with my partner but acquired this debt long before we met, so he is somewhat vague of my situation as our incomes are kept separate other than household bills. I have been managing to meet the interest payments only for 5 years so the actual debt itself has not been reduced. I would like to make payments to reduce the debt as the interest paid so far is just dead money. Would I qualify for an IVA? Can you suggest any other avenues I could look into please without going down the route of equity home release
You technically might qualify for an IVA, but depending upon the level of your disposable income this may not be the best solution for you. How much do you feel you could afford to pay to creditors on a monthly basis, and have you also considered whether a DMP might be a better option for you.
Do you have any equity in your property at present?
If you were able to get an IVA, then there is a possibility that you would be expected to release some of your equity (if there is any) in the 4th year.
I recommend that you phone an Insolvency Practitioner to ask advice. Visit www.iva.com for a list of reputable companies. Alternatively, there are several who post on here - Melanie Giles, Size5, Michael Peoples, to name but a few. Details of them all can be found under the experts link on the left hand side of the page. There are a couple of debt advisors you could phone as well - Andy Davie and VikiW.
They will tell you of all the options open to you and advise as to the best way forward for your circumstances.
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
If you are a homeowner and your partner has an interest in that property he will need to be informed about an IVA. If you enter a DMP there is a possibility that a creditor will apply for a charge which co owners are also informed of. Speak to an IP for advice and it may be that a refinance is the best option as could an IVA or a DMP. Let us know.
Speak to an IP give him or her all information regarding you and partner - details of all assets and liabilities and your Income and Expenditure. Visit www.iva.com for reviews on a number of good practitioners. Your level of debt is just about supportable for an IVA with some practitioners - others might not take this level on. However there are other options and the most appropriate advice will come free once an IP is made aware of all the facts. Good luck and let us know how you get on.
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.
