www.iva.co.uk

Hi,
I owe about £50k on unsecured loans, credit cards and personal. I have about £30k equity in my house and own a £30k car which i use for work. If i tried to get an IVA for these debts would by house or car be effected, i.e asked to be sold?
Many thanks in advance,
Lee

Hi Lee
Your car would certainly have to be sold and you will be required to release some of your equity in the final year of your IVA
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

Hi Andy,
Thanks for the super quick responce.
The car is a requirement in my employment contract.
I am paid a car allowance and mileage by my employer and they have minimum requirements on vehicle spec and age. This payment by my company pays for the vehicle.
Is there no way of me applying for an IVA and keeping the car due to these mitigating circumstances?
Kind regards,
Lee.

Hi Lee

I assume that the car is on hire-purchase or lease? You may be able to put a successful argument to your creditors for retaining such an expensive car, depending upon the quality of your offer.

How much disposable income do you also have to offer creditors each month?

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

Hi Melanie,
I put £20k cash down on the car from my previous car and £10k on hire purchase.
I currently have about £200-£300 a month disposable before paying these nonsecured payments. This could be increased to £400 or so by cutbacks and work overtime and bonus'.
Thanks for your advice on this guys, it is much appreciated.
Lee.

Hi Lee

The problem you have, therefore, is that you have debts of £50k and equity in your home and car of £50k, plus an ability to offer monthly contributions. You are therefore not insolvent, so an IVA is not an option for you. I suggest you consider re-mortgaging to be able to pay a lump off all of your debts, which should leave you with more manageable repayments, or consider downsizing and using some of the equity for debts also.

Failing this, you may wish to consider proposing a Debt Management Programme until your finances are more certain.

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

Thankyou Melanie,
I have been speaking to the CCCS with regard to a DMP and wanted to explore all alternatives.
Thankyou both for your advice on IVA's.