is an iva right for me?

[ohtobehappyagain]

hi, im a newly seperated mum of 2. My husband and i jointly owe £49000. We have a mortgage on a property that is worth approx £220000 of which we owe £217000. As part of our divorce settlement the house will be signed over to me so that i can have a home for our two kids. i will then be solely responsible for the mortgage. my outgoings are approximately £3350 but my earnings including maintenance and tax credits are £2531, so i obviously have a big shortfall. My main questions are
if i apply for an iva will it affect my ex hubbys credit rating as he is on the loan agreements etc
do child/spousal maintenence and working tax and child tax credits count as income?
i pay my mum to look after the kids whilst i work, will they take that into consideration?
what sort of payment will i be expected to pay, and over what period of time?
if and this is a huge if, i ever meet someone else and remarry, does there income then get taken into account?
what if i sell my house to move in with my parents?, this would mean i have no mortgage to pay, so will they take more money. Im assuming the house would not make a profit due to recent estimates.

im sorry to ask so much but i have spoken to a couple of companies but they dont give direct answers and i feel a bit bullied by them. I honestly dont know what to do as i assume bankrupcy is not an option because i want to keep my home for my children. my worlds falling apart and i just need some straight answers, please help????

[Shining]

Hi and welcome to the forum.

I won't be able to answer all your questions but I'm sure between us we'll do our best.

I would suggest taking a look at www.iva.com for a list of companies and some reviews of these, we also have professional posters on the forum and they all come highly recommended.

There will be a solution for you and all options will be discussed by a good IP with you x

[ohtobehappyagain]

thanks. how long have you had an iva? i feel like i keep reading that whilst they give you an end date they keep extending it and then ask you to remortgage. its scary enough finding my self on my own but now all this, its too much.

[Julie]

Hi and welcome to the forum [:)]

You are not alone and we'll all help you as much as we can.

Are you in employment?? We need to know what your income is along with the debt to advise you?

If you look at the link Lesley posted, then you can read reviews on companies.

[Shining]

I'm month 27 of my 60 month IVA...there will be equity release but any good IP will explain all this to you 100%.

Take some professional advice and don't rush into anything make sure you're 100% happy with everything before you proceed. By getting the expert advice of 2 or 3 IP's you'll get free impartial advice.

Keep in touch x

[MelanieGiles]

I would try a company that has time to discuss these issues with you, rather than ones who seem to be bullying you down one particular route.

Your questions are all perfectly sensible, and deserved good answers so that you can take time to make the right decision for you and the children moving forward.

[ohtobehappyagain]

Hi and thanks for your posts. I earn 700 a month from my part time job. My ex is giving me some money when he wants but no maintenence is yet in place. I get working tax credit of 600 a month which includes the childcare element and child benefit of 132 a month. Yesterday was a bad day, my ex said he won't help pay off the credit card bills because even though they were used to pay for our stuff they are in my name. I'm totally and utterly messed up. I think bankrupcy may now be my only option but my house has no equity and then my children and I would be homeless. Can anyone tell me if I should be paying for an ip?, and if so how much?, thanks.

[Julie]

Hi - the IP's fees will be taken out of the payments you make in an IVA. Some companies do ask for upfront fees, but there really is no need. There are a lot of companies that DON'T require upfront fees.

Please try not to worry, even if you had to go Bankrupt you would probably keep your house especially as there is no equity.

You really do need to speak to a professional, the ones who post on here come highly recommended. You'll know your options then and can decide whats best for you.

xx

[kallis3]

I agree with Julie, if you have no equity then you would be unlikely to lose your house if you go bankrupt.

Visit the link that Lesley posted and speak to one or two companies for free advice, or click on the expert link on the left hand side of the page and contact some of the ones who post on here.

[dalelovell]

I came across these tips on the Ashley Park blog: *link deleted* about IVAs and the pros and cons of them, hope it helps in some way and sorry to hear about your money problems.

Advantages:

The debtor can continue trade and income towards repayments which protects the individual’s assets. Proposals are drawn up by the debtor to accommodate his/her circumstance and of course does not suffer restrictions which would of incurred through bankruptcy, such as becoming a director of a company.

The advantages to the creditors are also favourable as IVA costs are considerably lower than in bankruptcy. As an insolvency procedure the creditors can also reclaim tax and VAT relief as a bad debt.

Disadvantage:

Contributions from the debtor last longer, at about five years, as opposed to three years in bankruptcy. There is also still a risk of bankruptcy if the debtor fails to meet the terms on the agreement and his home and assets can still be at risk.

[stephen88]

I have been wondering if an iva was right for me also but i am wondering who would be the best company or charity.

[kallis3]

Hi,

Please visit www.iva.com for a list of companies and reviews. Give one or two a ring for free and impartial advice as to all the options open to you.

[Andrew Graveson]

Just found this link which may be of interest to the site administrators in connection to this thread:

http://www.trust-deed.co.uk/forum/topic ... PIC_ID=714

Somebody (using the same or similar usernames) is setting up multiple characters on pretty much every UK debt forum that I am aware of and asking a question about debt charities.

Clearly up to something... I'd suggest that the individual's profile on this website contains the relevant clue.