Can you have a joint IVA with your husband?

[c.f]

Hi, Can you have a joint IVA with your husband? If so, if someone in your family is prepared to lend you both a lump sum to make an offer to your creditors and then pay the family member back - is this acceptable. Would it be about 30% of the debt? If you went down this route would you both have to be in work and produce 3 payslips? Thanks again.

[aguise]

Hi cf and welcome

There is an iva which though not actually joint is calculated on both incomes and expenditures and has only one monthly payment. I have one like this. There is no joint iva as it is an individual voluntary arrangement. You can make a full and final offer but there are lots of factors to take into consideration and without knowing more of your situation is hard to advise., but yes creditors may accept as low as 25% of total debt but it again depends on your actual situation. Do you own property,if so is ther much equity in it. If you can post more of your amount of debt incomes and expenditure (living costs), minus creditor payments and also if you own property or have any other assets, then others can advise.
Hope this helps a bit.
Ang

[MelanieGiles]

Hi cf
Ang is absolutely correct in her explanation of mutual and interlocking IVA's. Have you calculated for IP fees in your 30% calculation as these are likely to between £4,000 and £6,000? And do you owe anything to either HSBC or Northern Rock - who have acceptance criteriae of between 40% and 50% of total debts.

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

[c.f]

Hi cf
Ang is absolutely correct in her explanation of mutual and interlocking IVA's. Have you calculated for IP fees in your 30% calculation as these are likely to between £4,000 and £6,000? And do you owe anything to either HSBC or Northern Rock - who have acceptance criteriae of between 40% and 50% of total debts.

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

Thanks very much for your advice. Between us we owe £155,000 on credit cards. The larger amounts are with Egg, Barclaycard (Visa and Mastercard), Cahoot, Mint, lesser amounts on Capital 1, Sainsburys Bank, MBNA (£5000), Marbles (£9700), GE Capital Bank, Marks and Spencer, John Lewis. I owe £106,000 and my husband £51,000. We sold our house 2 years ago to raise some money to pay off as much as we could, but not knowing any better this was a big mistake as it didn't pay of nearly enough and the interest just started climbing again. My husband has a house which he bought six months ago and is on an interest only mortgage with just the £4000 deposit equity in it. My family may be able to lend us a lump sum to make a settlement - its a once only offer as otherwise they will use the money for something else. We are living with them at the moment as we cannot afford to live in the house and would pay them back the loan. My husband would have to rent the house out until we have paid back the family. If they didn't accept the offer then I think I would be forced into bankruptcy. How much do you think they would accept under these conditions. Does each debtor claim a different rate of acceptance or do they all have to agree? I am absolutely desperate to sort this out - it is making our lives an absolute hell. The interest we have been paying is incredible some of the minimum payment of £270 are £170 of interest - we cannot possibly continue. I am just withdrawing cash and paying the cards, but pretty soon there will be nothing left. Please help!!

[MelanieGiles]

Hi cf

You would need to make payments into the arrangement of at least £800 to make IVAs acceptable to your creditors. If you have that level of disposable income or more, then an IVA is an ideal way of repaying your creditors and thus avoiding bankruptcy. If your disposable income is less, then bankruptcy is likely to be your better option.

If you were looking at a lump sum option, I would suggest a figure in the region of £45,000. I do a lot of these types of proposal, and can tell you that your creditors would probably be mindful to accept, as they would get little or nothing in bankruptcy. The advantage for them of accepting a full and final settlement offer, is that they get the money a lot earlier.

Your individual creditors all have to receive the same percentage return.

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

[aguise]

Hi cf

Consider Melanies advice.You need to get some closure for yourselves on these debts, and be able to get back to normality without the worry.
I would like to add that Melanie is the best and if you can make a full and final offer then that she would be the best person in my opinion to represent you,her reviews are outstanding and she takes great pride in her job.
All the very best keep posting.

Ang

[Adam Davies]

Hi Cf
I think that you need to act as soon as you are ready to.
You have several options open to you and I suggest that you have an informal chat with one of the companies on this site.
Good luck

[tracy.h]

Hi cf
I too got in the same situation as you, useing one credit card to pay of another,it becomes a way of life until you realise you cannot continue to live this way and i to would contact Melanie she gives professional honest advise and has helped so many people who post on this forum but if you are considering a one of payment iva i would definatley stop useing your credit cards asap,as the creditors will not appreciate wipeing a percentage of your debts if you are still using credit.
Good luck i hope it works out for you,keep posting, let us know how you are getting on.

Tracy

[c.f]

Thanks so much Melanie for your answers. If you make a full and final payment is it in an IVA and does it work the same way, i.e. do all the creditors have to agree or do you approach them all separately. If you make an offer of full and final settlement is that the end of it?
Thanks so much

Hi cf

You would need to make payments into the arrangement of at least £800 to make IVAs acceptable to your creditors. If you have that level of disposable income or more, then an IVA is an ideal way of repaying your creditors and thus avoiding bankruptcy. If your disposable income is less, then bankruptcy is likely to be your better option.

If you were looking at a lump sum option, I would suggest a figure in the region of £45,000. I do a lot of these types of proposal, and can tell you that your creditors would probably be mindful to accept, as they would get little or nothing in bankruptcy. The advantage for them of accepting a full and final settlement offer, is that they get the money a lot earlier.

Your individual creditors all have to receive the same percentage return.

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

[gimmewine]

Yes, if you make a full and final settlement offer and it is accepted, that is the end of it. The full and final settlement IVA would show on your credit files for 6 years, so you may struggle to obtain credit during this period, but at least you can start living again without the constant worry.

[MelanieGiles]

Hi again

With a full and final settlement IVA, you still need to get a 75% majority of creditors voting in favour of the arrangement, and if they do then the balance of the remaining debts is legally written off.

I really do feel that one of the clear advantages of the IVA procedure, is that creditors have to make a decision on the day of the creditors meeting as to whether they will accept or reject. So this avoids any prevarication which can go on for a long time if you approach them all separately.

Also, the decision makers when it comes to reviewing IVA proposals within the banks are trained, commercial people who are used to insolvencies and are required to make sensible decisions. They rarely get it wrong in my experience.

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

[c.f]

Hi - thanks everyone for so much good advice - I really am at my wits end and it is good to know that there are things that you can do.
Melanie, I read in one of your replies to someone else that if a family member were going to lend you the money, they would have a year to raise it - is this correct? If so, would they just have to sign to that effect when you applied for the IVA. If the sum were accepted was happens in the interim before they actually pay over the money - are the creditors still chasing you or do you have to pay a payment each month until the lump sum is paid?
If you do try a full and final settlement, roughly how long does it take? - is it any quicker than a normal IVA and if they refuse is that that or do they negotiate. I am taking all your advice on board before I approach my family so I know what is involved and then I will telephone you - is this something you would take on for us?
Best wishes,

[MelanieGiles]

All your IP would need is a letter of intent from your family member confirming that the funds would be made available to you over a 12 month period - ideally 9 months is better so the case can be closed within a year. I would be delighted to act for you if you wish, and you can contact me via the website.

Once your IVA is accepted, then creditors are not allowed to pursue you or take any sort of legal action against you, so the sooner the better if you are suffering from undue pressure from them.

Look forward to hearing from you soon!

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

[c.f]

Hi Melanie, finally plucked up courage to set everything down on paper and e-mailed it to you the day before yesterday to your Cardiff e-mail address. Hopefully, after you've read everything if you think you can help,please email me and I will then phone you and instruct you. Crossing all my fingers and toes!!

All your IP would need is a letter of intent from your family member confirming that the funds would be made available to you over a 12 month period - ideally 9 months is better so the case can be closed within a year. I would be delighted to act for you if you wish, and you can contact me via the website.

Once your IVA is accepted, then creditors are not allowed to pursue you or take any sort of legal action against you, so the sooner the better if you are suffering from undue pressure from them.

Look forward to hearing from you soon!

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

[c.f]

Could I just ask another question, if you are living in a room at your parents house and a bailliff were to come (I hope this never ever comes to pass), are they only entitled to enter your room or can they lay claim to any of your parents things just because you live there. Thank you.

Hi Melanie, finally plucked up courage to set everything down on paper and e-mailed it to you the day before yesterday to your Cardiff e-mail address. Hopefully, after you've read everything if you think you can help,please email me and I will then phone you and instruct you. Crossing all my fingers and toes!!

All your IP would need is a letter of intent from your family member confirming that the funds would be made available to you over a 12 month period - ideally 9 months is better so the case can be closed within a year. I would be delighted to act for you if you wish, and you can contact me via the website.

Once your IVA is accepted, then creditors are not allowed to pursue you or take any sort of legal action against you, so the sooner the better if you are suffering from undue pressure from them.

Look forward to hearing from you soon!

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