Is an IVA the best route ?

[needybloke]

Hi everyone, Myself and my wife have debts of 22k approx (mostly in my name)unsecured. Also will owe the taxman 10k from Jan.
I can manage to keep head above water just paying the debts but haven't got anything left for the taxman ! Obviously they aren't keen on this situation.
Mortgage of 101k on house that was worth 140k but is probably only at 120k now.
Any advice would be gladly recieved.

[kallis3]

Hi and welcome to the forum.

Firstly, if most of the debts are in your name, then only you would be eligible for an IVA as it is for debts over £15,000. You should be able to include the tax payment in it is as well (but not 100% sure on that).

I recommend that you speak to an Insolvency Practitioner. Visit www.iva.com to see a list of companies.

There are several IP's and Debt Advisors who post on here, Melanie Giles, Size5, Andy Davie and VikiW to name but a few. All come highly recommended. Their details can be found under the experts link on the left hand side of the page.

They will explain all your options to you and advise you as to the best way forward for you.

[needybloke]

Thanks for that Jan, we will look forward to the coming replies to see what people come up with.[:)]
It's been so difficult facing the facts but hey, maybe this is the start of the way forward.

[flumpy dog]

hi needy and welcome. are you able to say how many unsecured creditors you have. im not 100 % but i think for most ivas they like a minimum of 3 creditors
if you fitted the criteria there is normally an equity release clause in an iva if you own a property. post some more and we will try and help and an expert will be able to clarify the bits i cant [:)]
kal has also given excellent advice have a look at an ip maybe just to get some free initial advice good luck !

[needybloke]

There are four or five unsecured creditors depending if the taxman is applicable or not.

[flumpy dog]

well it seems you have enough creditors to fit the application criteria but like kal (jan) stated if the majority of the 22,000 is your debt then you alone would be able to apply for an iva. and also there is an equity release clause for an iva. jan is right though speak to an ip-there is plenty on here for just free initial advice and im sure one will be along soon who can give a lot more detailed advice than i can
wait a short while and they will answer.

[needybloke]

Something else I wanted to ask, If there is a clause in your IVA with regard to remortgaging after four years, then who would possibly offer you a mortgage with an IVA hanging over you ?

[johnh]

Hi, and welcome to the forum. If it is not possible to re-mortgage after 4 years or there is little or no equity in the house, one possibility is that the IVA will be extended for a further year. However, it is not impossible to get a re-mortgage within an IVA. Personally I would worry about that later as nobody knows what the state of the housing market is likely to be next month let alone in 4 years time. Your best move right now is to consult a few of the IVA experts mentioned above and they will explain all the options open to you

[pixie]

Hi Needy and welcome to the forum
The taxman can be included for all arrears upto the time of the iva. For both of you to enter an iva you would both individually need debts over 15k. Both iva's would then be interlocking. If you have debts in joint names you would include these on each iva. If your other half does not qualify then she could enter a dmp but both your incomes/expenses would be taken into account.
You would be required to remortgage in the 4th year, this would be 75-80% ltv. There are companies that will do this but if the equity in the property has fallen or you are unable to remortgage then you may be required to pay an extra 12 months payments.
You really need to speak to an IP, who will be able to give specific advise for your situation.

[flumpy dog]

needy-john is absolutely right now is a good time to contact an ip-get some free initial advice and they will go through ALL the available options to you. a few of the excellent people on here are andy davie viki w and melanie giles. all of them will give you no-nonsense sound professional advice good luck and were here if you need us needy !

[needybloke]

Thanks for the replies, keep em coming.
Don't know if it makes any difference but I am a self employed tradesman.

[kallis3]

It's fine for you to be self employed. You just need to be able to pay IVA payments as well as your priority debts and living expenses.

[flumpy dog]

as long as you have a stable income and could manage the 5 year repayment scheme i cannot see that being a problem. i am aware that some ips do request a face to face meeting if youre self employed but if you were to be accepted for an iva as long as you have a stable income it should be fine. one of the experts will confirm-they are around but sometimes they come on a bit later in the evening [:)]

[MelanieGiles]

IVAs are very suitable for self-emjployed people, indeed this is what they were originally created for. Whether this will be suitable for you, will depend upon the specific circumstances of your case.

With regard to your tax liability, this would need to be included, along with the tax liability for the current year - ie 2008/2009 - which cannot be calculated properly until at least 5 April 2009, so would need to be estimated based upon your management accounts to date and future trading projections.

With regard to your property, you are correct that you will need to look to raise equity during the final year, but this will be based on affordability and your ability to actually raise the money. No-one knows what deals will be available to people in IVAs in four years time.

[David Mond]

Any IP you contact will need to know exactly what your debts/your business debts and your wife/partners debts are. Thereafter your Income & expenditure will be required and your total household expenses including your mortgage. Then seek out an Ip by visiting www.iva.com and select one who meets your requirements as to the recommendations made. Good luck and don't worry there is a solution for you and your particular circumstances.