In a real mess, not sure what to or can do about our predicament. Any advice appreciated.
My wife and I owe approximately 82K. Mixture of unsecured loan, credit cards and overdrafts.
We have 2 children a car and mortgage of 96K house value approx 135K (and falling!)
I''m self employed virtually no income for the last 18mths. Close bereavements and moving house twice and failed investment (property developing)have all taken there toll and aided the financial head in the sand.
We have been borrowing from peter to pay paul trying to cover income shortfalls with credit card cash and are rapidly running out of options.
Ironically business is starting to pick up, albeit slowly, however we are not going to be able to meet minimum payments on our debt.
My question is how likely are we to be excepted for an IVA given that past income has been so poor.
You have a very good chance of being considered for an IVA, from the brief facts you have stated, but there are other options and it is important that you consider all of them carefully.
I suggest that you arrange to have a chat with an insolvency practitioner who specialises in dealing with self-employed cases, as they are generally more complex than acting for clients who can demostrate a regular income from paid employment.
I agree with Melanie that you need to seek professional advice. Visit www.iva.com for a list of companies and reviews, or click on the expert link on the left hand side of the page here and you will find IP's who post on here and come highly recommended.
They will all explain 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
Given that you are self employed there is almost certainly debts owing to HMRC. They are very supportive of the IVA process but do not like non compliance. Speak to an IP but also make sure that any outstanding returns are submitted to HMRC as soon as possible. Even if you do not have the money to pay the outstanding bills it will improve the chances of HMRC accepting your proposal if all returns are in.
