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I'm considering an IVA and would like advic on whether it is the best option.
My situation is that i am married with a joint mortgage of 155k House currently valued around 225k.
Personal debts of approx 30k on various credit cards and loans. In addition my wife borrowed approx 20k over a period of time to try to help but it has only made our position worse. I currently work and have an income approx 30k and jointly own a ltd company with my wife that she runs. We have a business overdraft of 57k with personal guarantees. How would all this fit into an IVA. Would we be able to include my wifes unsecured debt that was taken out to help me? How would the business be affected?

Hi usy and welcome to the forum

Assuming that the limited company is trading successfully, and their is no hint of your personal guarantees being called upon, you are not technically insolvent - although you are having cashflow difficulties. In which case I do not feel an IVA is necessary.

If you can afford to take on higher mortgage borrowings, I suggest you look at a 90% loan to value deal now, which ought to raise you £45k now after costs. You will be a little short of paying the debts off in full, but could possibly manage the reduced payments.

Mortgages are still the cheapest way of borrowing, but do be sure to cut up those credit cards and not rely on this type of credit in the future.

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