Looking for some advise please. I was in a IVA that failed at the back end of last year, due to a number of reason. Since then I have not heard any thing from my creditors until a few weeks ago.
I have recently gotten married, and recently found a new full time job (good salary), which means I am now in a position to start thinking about my debts again. But I am wondering what would be the best for my current position a IVA or a DMP.
We are currently living in my wife's house (as I was renting before),she has owned since we got married and in her name. She also works full time and along with my new job will be working full time. In a ideal world we would like to try to buy a new house, (in her name, but my income would help towards the mortgage and bills)
With this in mind if I was to take a IVA out again in my name, would this have any effect on her credit rating. Would her house and savings also be taken into consideration. My next question would also be for the DMP and its effects.
I have also been thinking about bankruptcy if this would be a option, but again I am worried what effect this would have on my wife's assets?
I have also been think about dealing with my creditors directly, as most of the debts are 3 year old they have been passed onto 3rd parties. So I might be possible to come to a payment agreement with them.
First of all get some free advice from an IP firm as all these questions can be answered. However whatever you decide your wife's assets should not be affected so it should really come down to affordability and the length of time it would take to repay.
If you can clear the debts within 5 or 6 years a DMP may be the most appropriate but if not bankruptcy or IVA could be the better options.
In determining the right solution for you now, you should be taking into consideration the following points:-
1 How much do you actually owe, and how much can you affords to repay to your creditors.
2 Are creditors likely to agree to not charge interest if you arrange to pay them an affordable sum on an ongoing basis. How difficult will this be to negotiate?
3 What are your long term financial goals and aspirations. Which debt solution enables you to get there via the fastest and cheapest means - and what implications are there for you in each scenario?
Having already had some experience of an IVA in the past, you know how they work and what is required of you. If your debts are high, and it would take you a long time to repay them in a DMP, either bankruptcy proceedings or another IVA might be better, however you do need to consider other factors such as credit rating.
None of these solutions really affect your wife in any great way, although her income will need to be taken into account in calculating your disposable income. Don't worry, she may not be required to pay anything from her income, but this is necessary to ensure that you are paying only a fair share towards joint household bills.
I would recommend that you arrange to have a chat with an insolvency practitioner, who can help you to assess what is the best solution, and answer any questions you have about any of the solutions. And good luck!
It seems that my wife's assets will not be taken into account which makes me feel better about. Although I understand that her income will be taken into account.
I will speak with an IP on Tuesday for further information and hopefully be able to move forward.
Although one thing I was thinking about was making a offer to my creditors. At the moment I owe £34700. My IVA if I recall was to pay back 27p in the pound. If I was to make a final settlement to my creditors, normally how much would they be willing to settle for. Given that my debts are now with 3rd parties.
It can be very difficult to try and negotiate a full and final settlement directly with your creditors, but no harm in trying. How much money do you think you could raise?
For a full and final creditors would normally still want to see an income and expenditure account before they accept the offer. You would divide the money pro rata among them and advise that if refused you will use an insolvency firm.
At a push I would be looking at around £10000 that I could pay as a lump sum, this would come from family. But they would only provide the funds should this clear the debt, if that makes sense.
Given that I have 4 creditors it would be spilt amongst them. So at a quick calculation would be around a 1/3 return. This would make it around the same return as my old IVA.
As you both mentioned it can be hard to negotiate with creditors myself. As I have 4 creditors what would be the best way to speak to them all with regards to the above?
I am hoping to speak with a IP on Tuesday, but as always you feedback is very welcomed
Basically you would write to all creditors with an I&E and a list of creditors. Advise the money would only be available if all creditors accepted by a set date of perhaps 4 weeks in the future. Advise that if all creditors accept then the money will be paid immediately and if all creditors do not accept then you will look at an IVA or bankruptcy. It may work and creditors would get more than they would in an IVA so possibly worth a try.
I have occasionally tried offers like this for clients of my own, and find that the worst thing is finding someone in each organisation who will take the responsibility for making the decision. If you are going down this route, do make sure that you get confirmation in writing that the balances are being written off before parting with the cash.
