I am not in bad debt, can I do an IVA?

[clp]

I have a good credit reating and I am not in arrears with any of my creditors. Each month I find it harder to make ends meet and my overall debt is increasing to allow living costs. I think an IVA may be the way forward but as I am not in bad debt will this mean I can not take this option?

[Adam Davies]

Hi clp and welcome.
The first thing that you need to do is find out if you are insolvent.
So work out your basic living expenses and your minimum debt repayments,if these are close to or more than your total income then you may be insolvent.Also if you are a house owner your equity needs to be less than your unsecured debt totals to be insolvent.
If you find that yu are actually insolvent then you can consider an IVA.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Hi clp

It sounds as if you are doing a very responsible thing by looking at your financial difficulties at an early stage rather than getting deeper and deeper in debt, and using additional credit to enable you to make repayments on earlier debts. This is a regular pattern that I frequently see.

As Andy says, give your finances a real health check, cut out all non-essential expenditure, and make a real effort to get those debts paid off as quickly as possible. Many people I have seen in the past have ably been able to repay their way out of debt, without resorting to insolvency proceedings. I sincerely hope that you will be another such case.

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

[lily]

Hi clp

You stated that your debt is increasing due to living costs, if I am reading this right you need to act now.

If you owe at least 15K to at least 4 creditors and you have at least 200 pounds a month disposable income, without paying unsecured debts. You need to, as Andy says have less equity than debt, you are insolvent.

please post more details.

lily

[Oliver]

There is nothing stopping you seeking proffesional advice on this matter. Why not speak to some of the companies on this site or contact the CCCS or CAB for some further advice.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp