Thinking about an IVA advice required

[IMRAN7866]

Hi

I have been reading about IVA's over the last 2 weeks but do not know if it would be approved as the last thing I want to do is waste loads of time and get know where just more in to debt. I have all unsecured debt to the value of around £55,000 I am only 23 so do not want to bankrupt as this would mean I lose my job. I have credit with the following people and do noy own my own home

First Direct loan £21,500
Halifax credit card £6,400
Halifax credit card £3,000
Virgin credit card £2,850
Marbles credit card £4,000
Egg credit card £5,750
Egg Money credit card £950
Amex credit card £4,400
Cahoot Overdraft £1,000
First Direct Overdraft £500
Mint credit card £5,300

My current take home pay is £1400 and my outgoings with out paying any creditor are around £900. As the figure shows I am using credit to pay credit. I have just recently transferred £5000 from my egg card into my current account to keep me going for a few months but that will soon run out and I will need to have a solution.

Can someone please help ?

[MelanieGiles]

Hi Imran and welcome to the forum

That definately looks like it could be a good IVA, but do look at the alternatives of DMP and bankruptcy proceedings before making up your mind. The majority of those creditors are very supportive of IVA's, but as you are so young could you post more details of the reasons leading up to your present insolvency?

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

[IMRAN7866]

The debt has been building up since I was 18. On cars to start of with, I have had a lot of bad luck with them and I have spent a good few thousand, expensive holidays and general spending. The worst thing is I have nothing to show for it. I could afford the payments at the time...the main reason for me now not being able to afford the re payments of my credit is due to me having to move out from my parents house where I used to pay no rent and pay nothing towards the bills. Since this move it is getting harder and harder. I have been able to earn around £2000 after tax over the last 2 years so have been able to afford the payments but now my overtime has gone I on receive around £1400.

[MelanieGiles]

OK - well at least you are now owning up to your responsibilities and wish to offer an IVA rather than the potentially easier option of bankrupty. You will now need to find an IP to represent you and put the offer in front of your creditors. I wish you every luck with your application.

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

[IMRAN7866]

Thanks Mel... i would like to deal with you if possible ha
ve you some contact details

Oh and just one more point should i go for an iva noe or wait until i have used up all my funds - as i could last another 6 months at the tops

Thanks again

[MelanieGiles]

If you wish me to represent you I would be delighted - just contact me via my website. If you have funds to pay another six months contractual repayments, but cannot see any light at the end of the tunnel, it is probably better to start the procedure right away.

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

[Adam Davies]

Hi Mel
Would it be wise for Imran to move the money from his account back onto the Egg credit card once he decides on an IVA ?
regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[IMRAN7866]

good point; Mel what do you advise

[jpj]

Imran
Do you know you would loose your job if you went bancrupt? at 23 with no house etc wouldnt you be better going bancrupt,getting the whole thing out the way in a year or 2, then being able to start to build your life again?? 5 years of an IVA is a long time, and every penny will have to be accounted for in 5 yearly reviews. An IVA isnt an easy way out. with an IVA on your credit file it will be 6- 7 years from now before it looks half decent again! thats a long time! (I presume a year or so after bancruptcy is over your credit file starts to recover, correct me if im wrong Malanie )
JPJ

[MelanieGiles]

Sorry Andy - I completely missed that post. Yes I think it would be a good idea to transfer the money back to Egg if it has been borrowed recently.

And to jpj - a bankruptcy will stay on a credit file for 6 years from the time it commenced - as does an IVA.

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

[IMRAN7866]

i work in a bank jpj so yes i would lose my job..

Mel - sorry to be a pain but i have one more question. My dad is prepared to let me rent one of his houses. Would this be allowed in an iva as i would still need to pay him rent.


Your advise on this will be great

[MelanieGiles]

Absolutely - your father cannot be expected to give you any preferential treatment, and you should be paying the market rental for this 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