in need of your advice

[buster]

hi all of you on this site. i have finally plucked up the courage to join as i'm in need of advice with regards to an iva. the reason for this is like many of you, but mine began over the last 12 months, when i had a serious car accident an had to change my job title which meant a pay cut from 52000 per year to 26000, aswell as the usual mortgage rates rising, interest rates and no more 0% on cards i'm really struggling on around 80 per week. this month i have been late paying one of my credit cards and can see the same happening again. i'm a company director for a family run business and it has its pro's and con's. work is particulary quiet at the moment which is also scaring me. i need to know if when/if you get into an iva, will your creditors try and take your personal possesions e,g mountain bike, tv, motorbike,stuff like that? my car is company owned so is my mobile phone, should i come off as a director and become a partner instead? should i hide my wage amount through a family member so i pay out less in the iva? my girlfriend is staying with me at the moment and will her credit be affected with my circmstances? please help

[Andrew Graveson]

Hello buster,

Sorry to hear of the problems you are facing up to.

Personal possessions of significant value are unlikely to be at any risk in an IVA providing that you have disclosed them to your IP and the creditors accept your proposal. Items of lesser value (TV, bike etc) are not at risk.

Hiding your wage would seem like a particularly bad idea. The point of an IVA is that you make your best offer to repay creditors over a fixed period of time and they accept in return that some debt might be written off. There should be goodwill on both sides.

Your girlfriend can avoid damage to her credit record by filing a "notice of disassociation" from you with one of the major credit reference agancies (for example Experian).

[Adam Davies]

Hi
In an IVA your personnel possesions will be excluded,unless you have surplus vehicles.It will make no difference if you are a director or partner if you go down the IVA route but whatever you decide DO NOT hide your earnings,this site and forum does not condone debt avoidance.
Your girlfriends credit should not be affected by your IVA.
Can you post back your total unsecured debt,house value and outstanding mortgage[if applicable]
Regards

[buster]

thanks andrew.
what do you think about my position as company director? should i become an employee instead, does it matter? my father is director too and i don't want it to affect him or for him to know about iva. we do have a property mortgaged by the company, will it be considered, because if there is any equity it, it isn't just mine it's also other family members too and they aren't in financial difficulty so i wouldn'd want it to jeopardise their investment...

[buster]

my unsecured debt is probably near £38000, my house value is now around the same as i paid for it 20 months ago which is 130000, my outstanding mortgage is 124500....

[plasticdaft]

If there is any equity the IP running an IVA would only be interested in your share of it,as long as there is evidence that others have a financial stake in the house.

[buster]

would you have any idea on what i would be paying in an iva if at the current moment my income is 2000 per month after tax and my mortgage is 600, loans and credit cards are around 900. i also pay my ex girlfriend 200 for child maintenance for my son aswell, does that get affected in any way?

[Andrew Graveson]

Hi buster,

If the mortgaged property is owned by the company (rather than by you as a collective of individuals) it will not be included. A limited company is a separate legal entity to you.

Your position as a Director potentially makes your IVA a more than usually specialised process and you should choose an IP based on this. I'd recommend you contact smaller or medium sized IVA firm and from personal experience (and feedback on this site and elsewhere) you wouldn't do much better than Melanie Giles who regularly posts here.

Might be an idea to contact Melanie or one of the other IP's who are prepared to hold themselves publicly accountable on this forum.

[Andrew Graveson]

On the subject of contribution levels you should expect to pay what you can reasonably afford after your bills and other needs (food, petrol etc) are met.

Again a good IP will be able to explain the levels of expenditure that are considered acceptable by creditors (who will determine whether or not to accept any IVA proposal that you might make).

[Adam Davies]

Hi Buster
You will pay all your disposible income into your IVA.So after mortgage,bills,food etc and child maintenance the remainder will go to your IP
Regards

[buster]

ok, thanks for all your help, i will be speaking to my financial adviser first thing tomorrow to see if there is anything i can do before applying for an iva but failing that, i will call melanie....

[MelanieGiles]

Hi Buster

Are you currently remunerated from the company by way of dividend income only, or are you salaried as well? Even if you wanted to, it woudl be difficult for you to hide your income from an IP, as you will be required to produce limited company accounts and copies of your personal tax returns by way of evidence.

I hope you manage to find a way forward without resorting to formal insolvency proceedings, but if you are not meeting your liabilities under normal contractual terms it may be time to seek some professional advice.