new loans to consolidate debt every year

[c_r]

Hi. My husband and I have approx. 60k debt on top of mortgage (150k). Our loans are approx. 1k month, morgage £900 month. We recently took out new loans to consolidate debt and have lower monthly outgoings, however CSA have now reassessed my husband and increased his payments. We are once again struggling. We have had to take out new loans to consolidate debt every year to keep our heads above the water. Do we qualify for an IVA, will the CSA (pre march 2003 scheme) take IVA's into consideration when calculating? I am currently on incapacity benefit and am unable to work.

[neverending]

Hi
I believe that CSA payments form part of your husbands expenditure and this amount will continue to be paid if he goes into an IVA.
Can you state your house value,confirm that all the 60k of debts are unsecured and also details of joint unsecured debt.
Thanks

[MelanieGiles]

Hi cr

That's correct about the CSA payments, these will have to be met as part of ongoing expenditure. If you are regularly taking out new credit to repay older debts, it is clear that you need to do something to consolidate your financial situation and stop your problems from increasing further.

An IVA may be an option for you, depending upon circumstances, but there are other procedures and you should seek specific financial advice to enable you to make the right decision.

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

[c_r]

Hi. House was bought in August for 155k, 5% deposit, (we had to relocate with husbands new job. 30k of debt is with same company as the morgage and is 30 years unsecured, other debts are for approx. 7years with other loan companies, all unsecured.

[neverending]

Hi
Who is the mortgage company ??
Also have you calculated your disposible income ??

[MelanieGiles]

I assume it is Northern Rock? It appears that you have little equity to offer creditors, what disposabl income would you be able to offer into an IVA? ie what is the balance of your income left, after deducting usual household and living expenditure, but excluding loan repayments?

Also, did you envisage your husband's CSA payments being increased when you bought your current property?

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