under what circumstances is idebt written off.

[yin]

my husband and i are considering an iva, our totl debt is about £35000, is it best to apply for a joint iva or can he apply alone, however his wages is just enough to pay the mortgage and secured loan and i owe 15000 earning 1200 a month. when during the iva process does ones debt get written off, and, under what circumstances is it written off.

[MelanieGiles]

Hi vin and welcome to the forum

There is no such thing as a joint IVA - so if you both have debts you will need to propose indivudual voluntary arrangements each. These can be made mutual and interlocking - ie you just make one joint payment and all creditors receive an equal distribution.

How much disposable income do you have and do you own a property with equity in it?

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

[yin]

thanks for your reply, we have disposable income of £200 and own our property. we do not have any equity, our house is worth £250000 our mortgage is £205000 and we have a secured loan of 87000.

[MelanieGiles]

Hi again

With only £200 of disposable income and no equity in your property, you do not really fit the criteria for an IVA.

I suggest that you give serious consideration to bankruptcy proceedings given that you have no assets which would be at risk. You could also try a Debt Management Plan, but this would take a long time to repay your debts, and your ongoing payments will probably not even cover interest.

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 Yin
Another option is to sell up and offer a full and final settlement to your creditors.If you sell for £255k then you may be abe to pay your debts in full.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Andy, these guys have a secured loan of £87K, so selling will not release any equity.

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]

Sorry Melanie,read it as £8700 not £87000.
Time for bed !!!
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp