My wife and I have unsecured debts of c.£50k, however most of them (c. £48k) are in just my name. I owe 9 creditors. My take home salary is c. £2,800 per month.
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My wife does not work as she is a full time carer for one of our daughters who is profoundly disabled. My wife receives Child Benefit, Carers Allowance, Child Tax Credit and my daughter's Disability Living Allowance. We have c. £20k equity in our house.
After paying household expenses (ie 50% of mortgage, 50% of groceries etc) I would have c. £1,100 left each month to pay creditors.
Am I able to enter an IVA in just my name to deal with the £48k debt? Would my wife be able to keep all of the benefits and tax credits she receives, or would some count as my income? Does an IVA sound like a good option for us?
You would be able to enter an IVA to deal with the debt in your name, but if you are able to afford £1,100 per month to pay creditors, then you would probably pay your debt quicker in an informal debt management plan.
Are you struggling to meet your minimum monthly payments?
Hi, there are a number of firms and customer reviews at www.iva.com. Speak to two or three for free advice before you decide on which option to take. Sounds like you could be debt free in a couple of years! Good luck and let us know how you get on x
Your wife could certainly continue to pay her creditors and an IVA does seem like a viable option for you alone. However, I feel your figures may be wrong as I would expect your income is more than 50% of the total household income therefore your contribution to the costs should indeed be higher. In addition, your daughter's DLA is for her needs and should not form the basis of any repayments to creditors so I believe that the amount you could genuinely afford to repay creditors is substantially below the figure of £1100.
Speak to an IP firm for some free advice and hopefully it works out.
Quite agree with Michael - you need to speak to one or two companies. As well as the link posted above, the experts who post on here come highly recommended as well.
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
The best thing to do would be to speak to an insolvency practitoner directly about the possibility of proposing an IVA. They will help you to work out an analysis of the household income and expenditure between yourself and your wife, and thus calculate what you solely can afford to pay. In tune with the earlier posters, I think you have massively overcalculated your disposable income, in which case an IVA would appear to be a sensible solution.
