My Dad is considering an IVA, I have a few questions:
Will it help if I file for a divorce before the IVA goes through? (Husband and myself Have been having problems for a long period of time, so it may help)
I have 2 children 18 and 20, will it affect their credit as they both are applying for/have student finance and student credit cards?
How much is it likely to affect my credit?
Hubby and I both have IVA's and our daughter (who still lives at home) can get credit quite easily.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Your finances are nothing at all to do with your Dad's affairs unless either you live with him or vice versa - then total household expenditure would have to be apportioned.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
My Dad is taking the IVA, we all live together and we all have small incomes and we are all over the age of 18.
Another question i have is, in the agreement for the IVA it said 85% of the equity but is this allowed as the property is in both his name and my mums name.
Also, If my dad takes the IVA will it affect the credit of my mum?
It would only be your dads share of the equity that could be taken.
Your mothers income would be taken into account only to ensure that the household expenditure is fairly split.
If you are all paying money to the household costs(ie paying your share of the food,electric,gas etc),then all the incomes coming in would be safe but the IP would need to see that everyone is paying a share of the bills.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Your Mum's credit rating might be affected, but she could file a notice of disassociation with the credit scoring agencies which ought to restore her status.
As i said above, parents have been having problem for a period of time, so in all honest my dad has been paying no bills, none of the mortgages etc for the past few years but in the IVA form stuff which is yet to be submitted he has made it seem like he is paying for things when he is not! The income of my mum is £5k max and to be honest no one really knows my dads income. Is there anything my mum could do?
All in all it is a very messy situation so it really confusing about what the best way to go about it is. My dad claims that he has a debt of around £200K which seems unrealistic because he is not stupid enough to let things get that bad.
So would it be better to just separate all the finances by going through a divorce and then let him apply for the IVA saying that he was no equity that way we wont have to sell the house etc?
Is your dad just putting down his unsecured debts? £200k does seem rather high. Is he aware that he can't include his mortgage on that?
You shouldn't have to sell the house, all your dad would be required to do would be to try and raise money on his half of the equity.
Which company is he using? I think he needs to have a chat with them again to discuss these problems.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Divorce would have to be the absolutely last resort for your parents, but there does need to be some honesty on your Dad's part - both with his wife and an IP acting for him, who will want to know exactly how much he owes and to whom, and also the history of how he has got into the current situation.
Im sure that he has not included the mortgage in his debt because he doesn't pay for it my mum does.
Im not sure what company he is using, I will try to find out. My mum is encouraging to sit down and have a look at things but he refuses to think about other solutions and seems to want to do it his way.
It would be good if you could all sit down and discuss this. Your dad needs to make sure that his income and expenditure form is correct before he makes any futher moves.
He could possibly benefit from talking to another company. If he visits www.iva.com he will find a list of companies and reviews and their information will be free and impartial, and all of his options will be explained to him.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I agree that he should speak to other firms but he refuses to sit down and sort stuff out he just wants to do it his way and he seems intent on applying for it as soon as possible and from what my mum understood he was wanting to send of the application by tuesday.
Melanie please could i have your phone number, maybe i could get my mum or dad to phone you and explain the details in full.
