Some advive please

[Limana68]

Hi there
Just found this great site!
I am looking into applying to enter into an IVA. I owe approx £28000 which is in my name only. My hubby owes £5000 in his name only and the only joint debt we have is £1200 overdraft, apart from our mortgage.
Would I be okay to enter into an IVA on my own, or will they only do a joint one as we would want to include the overdraft into it, or would I be able to just include my half of the overdraft(£600). One of the creditors is Abbey, and we also have our mortgage witht hem so am a bit worried about our house. ( we have arrears of £900- payment plan).
Sorry of its all confusing, but any help would be appreciated .
I work full time, and hubby is now a carer for my mum which is why we are suffering finacially as he cant work full time, and we also have 2 young kids.I just cant go on like this anymore, need to take things in hand and an IVA seems the best option.

Thanks

Li

[Adam Davies]

Hi
You can enter an IVA without your husband having to.The full joint overdraft would have to be included[not just half as you are both jointly liable for the whole debt] and an allowance made in your expenditure to enable your husband to service his debt and the overdraft.
The mortgage with Abbey should be fine as long as you keep up the agreed payments and make sure that the payment plan is factored into your expenditure.
How much disposible income do you have,allowing for husbands unsecured debt repayments but not yours,and what is your house equity?
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

[Limana68]

Thanks Andy for your reply
My take home wage is approx £1800 per mth, and hubbys payments are £160 p/mth ( 2 x credit cards)I would say that I could realistically afford around £300 p/mth for IVA( I currently pay around £650 min payments) but would have to really look into the income/expenditure part of this site to be totally sure.
My hubby gets carers allowance for looking after my mum(£200 p/mth) so am not sure what they class as income. I take it that if I enter into it alone, then its just what my income/expenditure is?
We only bought our house in Apr this yr ( so our mum could move in with us) so equity is just the 10% deposit we paid around £13000, I dont suppose it has gone up in value.
Also, our house was bought with the help of my brother who,lives abroad but wanted my mum to be cared for so he helped with deposit and helps with monthly mortgage, and his name is on the deeds as well as ours.
Thanks for any guidance

Liz

[MelanieGiles]

An IVA does sound as if it could be a sensible solution for you, but your husband will need to make arrangements with the bank to pay off the overdraft and cover his credit cards from his income, with no contribution from yourself. And you will need to be prepared to raise equity in your property at the end of the arrangement, based upon borrowings of 85% loan to value.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Limana68]

Thanks for that, I am starting to think about all sorts now........what happens to pension contributions? Will I have to stop my pension payments on an IVA?
Also, do you think it would be easier for my hubby to be included on the IVA, or will he not be entitled as he only has 5K of debt?
Sorry for all the questions, its just such a big decision to make but one that has to be done!

Li

[MelanieGiles]

You may be asked to suspend or reduce your pension payments whilst you are in an IVA, but this will depend upon your age. I would not propose an IVA for your husband, as the level of his debts does not really fit appropriate criteria.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp