Hi All,I'm new to the forum so please bear with me.In short I have debts from C/C & O/D's of circa 110k that I ran up trying to keep my old business afloat.Is it possible to try and arrange an F&F offer to my creditors through an IP at this stage as a family member has provisonally offered some financial help on this front depending on whether they would look at it and if so what sort of ££'s would they be looking at settle[:)]ing at? or would it be better to go into an IVA.I have equity in my home of circa 100/120k with my share being 50% as it is shared with my wife.Any advice would be greatly appreciated.
It is possible to do a full and final IVA straight off.
You need to speak to a professional. Visit www.iva.com for a list of companies and reviews and give one or two a ring for some free advice.
They will go through all of your options with you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks for your advice.My ex business partner has now gone into a IVA and left me exposed to this debt?so what will happen with his share given his part will no doubt now be on a % basis of his IVA. I want to just get on with my life and take the worry away from my wife and children as they did not ask to be put into a position like this.I have seen on previous messages on the forum that a partners earning's are taken into account as they are "deemed" to have benefited from C/C's & O/D's however my debt was down to a failed business which she had no part of,so would they still expect her salary to be included??
Hi Wilbur - is this a duplicate post, because I am sure I answered it last night!
I would have thought that an offer of around £40k would provide a similar outcome to bankruptcy proceedings, but the offer sum is really dependent upon the ability of your family member to raise funds, and may need to be higher if you have a disposable income which creditors could also benefit from in bankruptcy.
If your debts with your business partner are jointly and severally liable, so you both need to include the full value of the debts in each IVA, and the creditors will then get a dividend from both estates based on the gross figures they are owed.
If your wife has not benefitted from the debts in any way, then her own disposable income should not be taken into account, however this is not so relevant if you are going to be offering a lump sum from third party funds.
Hi Melanie why bankruptcy or are you saying this would be an example if bankruptcy was an option?I have seen on various sites that with the level of debt I owe that a monthly amount of circa £450 would be required to pay into an IVA,if that was the case multiplying this by 60 payments would total £27000 and then the fees on top would this be correct.I dont think my family member has that type of money £40k.Lastly if I did enter an Iva I would not be able to get credit to remortgage so where would that leave the family home?Look forward to your reply.
Yes - I am not suggesting that you should go bankrupt, merely that we have to show the comparison to bankruptcy in submitting your IVA proposals to creditors. Creditors ought to be assured therefore that they are going to get a better outcome by supporting your IVA rather than rejecting it.
In terms of your offer, you should work on the basis of what your relative is prepared to offer, and for these reasons a direct chat with an insolvency practitioner is probably something you should consier as it is difficult to advise fully on the forum. Do remember that fees come out of the sum offered, and are not payable on top.
In your case you seem to have a relatively high level of equity and some disposable income, so this would have to be addressed within the IVA proposal, but firstly can I suggest that you check the valuation of your property on a forced sale basis as you may be suprised at how low it could be valued at which would then affect the equity sum.
Melanie Thanks for clearing the confusion on bankruptcy versus IVA .The reason why the family member is offering the possibilty of introducing a third party financial injection is they do not want their sister(my wife)being forced into this situation of having this burden over her and our children as she had no involvement with the business,it's not a cash injection on top of a monthly IVA payment,just a one off F&F offer.Great news on the forced sale valuation as this would definetly reduce the equity amount.
It is great that your wife's relative wants to help you sort out your debt issues, and this may well present the best option to you right now - so do seek some professional advice and get that valuation sorted. Very best of luck with your application, and do let us all know how you get on.
welcome to the forum from me and good luck - as always Mel's advice is great and there is nothing more to add other than to say we are always about on the forum should you have further questions.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Another thing to consider is that if your relative is offering a lump sum to clear your debts, any disposable income may be paid back to them on a monthly basis, unless the lump sum is a gift.
