IVA and Partner Query

[Kingeer]

Well I had my meeting with the CCCS, which lasted well over an hour (it was done via phone). My partner was with me and made contributions to the meeting

We ruled out BR during the 1st few minutes as its not something that I want, and feel that that I owe it to my creditors to try and pay back what I owe them.

My situation is difficult and would probably take a few separate posts to explain in full – as not to bore you all ! I have looked at the previous threads and I think some of these are unique, so that is why I am asking.

My 1st question is :

My partner pregnant and we are due in April. She is currently in full time employment on a contract until end of February. The contract ends, however they have an obligation to pay SMP for 9 months (I think). We currently have a joint mortgage, and she pays some money towards this and the bills. From March she will not be able to do this and I will become responsible for all the bills, including mortgage, car running etc.

If I took out an IVA in my name, do I have to declare her current salary and the money she pays towards the bills at present ? What will then happen when this changes in a few months as she will not be able to contribute the same amount – will her SMP have to be taken into consideration ?

TIA

Rich

[Adam Davies]

Hi
Her SMP will be taken into account but only to assess the disposible income available for your IVA.Will your partner be returning to work ? If not then this needs to be factored into the IVA.
Just inform the company that you choose about your partners job ceasing in Feb as your proposal will more than likely not be ready before that date so will not need the details of her current job.
Are there any joint debts and does your partner have any debts ?

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Kingeer]

Hi Andy

there are no joint debts, and my saving grace i think in this madness is that she is quite astute in money matters - hence no debt for her, not even an overdraft.

She is undecided if she will return to work, but if she did she would be taking home approx £1800 per month based upon current role.

not wanting to sound facetious, but i want to keep her out of this as i feel its my responsibility.

under the IVA yearly review, could she make a contribution to household bills (we are not married)? but also could i take into consideration child care costs that we would need to pay ?

after some advice from CCCS i am reviewing the DMP option and just trying fathom out how best to deal with this.

again, many thanks for your help.

Rich

[Adam Davies]

Hi
If she returned to work once you are in an IVA her income would be taken into account to make sure that you were not subsidising her over your IVA.So if she earned 40% of the joint income,for example,she would be expected to contribute 40% of the household bills,this would increase your disposible income as you would have been paying far more than 60% of the bills whilst she was on SMP.
Can you remind me of the total of your unsecured debts and your disposible income with your partner on SMP ?
regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Adam Davies]

Hi
Just to add that childcare costs would be taken into account.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Kingeer]

my unsecured debt is 47k

after yesterdays meeting, with SMP and possibly child tax credit (latter to be confirmed), disposable income was worked out at £895. This would reduce to £420 after SMP has ended and if she did not return to work.

we estimate fulltime child care costs of £680 per month if she did return to work


Rich

[Adam Davies]

Hi
Well an IVA could be proposed on the £895 for twelve months[?] then £420 for 48 months.This would return about 17k to your creditors,about 37p and is possible depending on your creditors,you would also have to remortgage your property in the fourth year and release a part of your share of the equity.
If your partner does return to work her net income after childminding costs will be approx £1100.
You may be better considering a debt management plan because if you could maintain payments of £800 per month you would be able to repay your debts within five years,if you could get interest suspended.Also your equity would be safe
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Kingeer]

Thats much apreciated Andy - its actually what CCCS said, however am still going to take a 2nd opinion i think.

Just seems a travesty that i have to drag my partner into my debts