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My sister is in deep debt (approx £21k ) with no home equity -lives with my father. She has 3 creditors- credit card, loan and car finance. Does nayone know if she's eligible for IVA and if she would lose her car (she needs it for work)? Many thanks! K

Hi PK

If your sister has a job and enough surplus cash after paying for her living expenses she should be able to have an IVA. Can you provide some additional information and one of the exeperts will be able help further?

Chiri

It could be difficult to get an IVA accepted with only 3 creditors. If your sister has no assets has she thought of bankruptcy? It's not as scary as it sounds.

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Hello

If your Sister is Insolvent (not enough Disposable income or assets to pay her debt) then yes it could be possible that she could apply for an IVA. Skippy makes a valid point about the number of creditors she has as an IVA could be hard to get through if all the debts are with the same people.

If you list the details of her creditors and her rough Disposable income (total income less all reasonable living costs) we will have a better idea.

Also the car finance could be a problem. Firstly if it is HP then it is a secured debt and can't be included in the IVA. Secondly if it is an unsecured agreement your Sister might have to sell the car and downgrade depending on its value.

Post some more details and we can advise further


Best Regards
Oliver

Thomas Charles and Co Ltd.
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