thinking about IVA, I've got some questions

[andy.w]

Hi all

New to this, I guess everyone was once!

Have been thinking for a while about IVA and have just found this site - I've got some questions (you've probably heard them before).

I'm married with three young children and we have (excluding the mortgage) about £80k worth of debt, between us we earn £47k, plus I do some casual work which averages £200 a month.

SO the questions:
- How does an IVa affect your mortgage, presumably it's not included
- What about the 'one low monthly fee' loans linked to your home - we have 2 of these that make up 90% of the debt
- How do people cope in the meantime, the last few months we've run out of money mid-month, luckily I've had a extra money from casual work but I have little booked next month and am worried about feeding the children.

ANy help/advice really would be appreciated...

Thanks
Andy

[MelanieGiles]

Hi andy and welcome to the forum

The IVA will not affect your mortgage in any way, but if you are currently in a discounted interest rate you need to take account of any increases which might occur during the IVA - for instance if you are required to revert to the variable interest rate.

Are the low monthly fee loans secured? If so they are not debts which you can include in your IVA and you will need to continue to pay these or risk having the property repossessed.

With regard to affordability of an IVA, the insolvency practitioner you choose to represent you will go through the figures with you to ensure that you have sufficient allowances left to look after your family. Do be sure that if you are going to include casual earnings as part of your income that these are sustainable in the long-term.