is an IVA something that could be useful to me

[peter.f]

I have approx £45000 worth of debt made up of 2loans & 6 credit cards. is an IVA something that could be useful to me. at the moment i have very little left per month after all my bills go out. Thanks

[Skippy]

Hi Peter and welcome to the forum.

Yes, an IVA could be an option for you, but please can you give us some more information - details of your income and expenditure, who your creditors are, whether you own a property and if so is there is any equity in the property. This will enable one of the experts to give you some advice.

Onwards and upwards!!!
View my blog at: http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

Hi peter

An IVA may be an option for you, but there are others which could be more appropriate such as bankruptcy proceedings or a debt management programme.

To assess what option is right for you, seek specialist advice from an insolvency practitioner or debt management specialist. Any of the experts listed on the forum would be happy to give you free, impartial advice.

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

[peter.f]

Hi Skippy13, thanks for you quick reply. Details as follows

Income approx 1600pm, expense including debts/mortgage and everything else around 1500
Yes, own own home. mortgage £85000, current value maybe around £100000

Creditors
HSBC - loan approx £20000, credit card approx £1100
Halifax - credit card approx £3700
Virgin - credit card aprrox £5800
Egg - credit card approx £4600
Sky - credit card approx £3600
YBS - credit card approx £900
Northern Rock - loan approx £4500

If possible i would prefer not to have to re-mortgage at the end of the contract, if possible. Also i was wondering if its possible to run it over 4yrs instead or 5?

Thanks

[MelanieGiles]

Hi again

How much of the £1,500 relates to repayments to your unsecured debts? I am trying to work out what disposable income you have.

It is unlikely that your creditors will accept a 4 year arrangement, unless of course you are able to offer 100p in the £ which is unlikely, and an equity raise at the end of the IVA is largely inevitable these days.

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

[peter.f]

Thanks for help so far Melanie.

Of the £1500, its something crazy like around £930 that goes towards payments on unsecured debt.

I guess that as far as the equity release goes, that fair enough

Thanks

[MelanieGiles]

Do you mean that your household expenditure including mortgage payments only amounts to £570? This seems extremely low. Why not have a look at the income and expenditure table on my website as a guide to income and expenditure and try and work out what you could actually offer to creditors on a monthly basis either through an IVA or debt management programme.

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

[peter.f]

Hi Melanie

Sorry, just me being a little stupid with my calculations

unsecured debt payments approx 940
household expenditure - approx 680
household icludes mortgate, insurances, tv/dky/phone etc

My wife actually pays the council tax/water/ gas & electric.

Hope this info helps

[MelanieGiles]

Hi again Peter

How much do you think that you can afford to offer your creditors, if you feel an IVA is a sensible option? To work this out you need to take both salaries, and deduct all of your combined household expenses and outgoings. Don't worry too much about who pays for what at this stage.

I cannot really advise you properly until I have this information. Also does your wife have any debts of her own?

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

[peter.f]

Thanks Melanie

I guess we'll have to sit down and work things out then.

I'll get back to once we've decided thats going to be best

Thanks for all your advice