www.iva.co.uk

Hello everyone (and apologies if this is a repeat post)

I have separated (very amicably) from my wife and have 54k debts. This rises to 79k if I include loans from family. I am applying for an IVA from Payplan who have advised they expect family members to 'step aside' during the five years, which is a problem as I was planning equity release in 2 years to repay them.

The bulk of my 54k is to LLoyds TSb, followed by Northern rock and then a variety of smaller creditors. I have 10k equity at the moment with teh other 10k protected as it is in my wifes name.

What are the main stumbling blocks to an IVA failing? Is it the creditor you owe, or the amount, or the equity? Is it worth getting my hopes up? My initial review looks like I may be able to afford £400 a month roughly. Is this going to be enough?

Are there any statistics on the rates of acceptance and the average repayments in the pound that are made.

Soooo many questions

Scott

Hi Scott
£400 on £4k is fine,how much of this is Loyds TSB ?
It always pays to take a second or third opinion from another IP before deciding on your provider.
Regards

Well the actual process of gathering all the info and getting surveys done has been so drawn out I'm getting panicky and just want it resolved.

Though forgive my ignorance, 'on £4k'? I don't follow

Sorry, Lloyds is about 22k

Don't pannick and visit www.iva.com to check out other IVA providers. Good luck

Hey Scott, welcome to the forum. I think Andy just missed a 5 off, as in £54K. Your family members might not need to step aside, it depends on whether you can prove these debts, as the creditors will want to see some sort of paper trail. If they could step aside it would mean that you couldn't pay them until after your IVA, do you think that they would agree to this? I would get a second opinion, give Melanie Giles a call, she is an expert on here and comes highly recommended. Good luck. X

I do not see why your family debts are being excluded, and to advise you to do this is not correct. It is true that creditors often ask for associated debts to be excluded from the IVA, but I would not propose one with these being left out - and in my experience IVAs are often accepted with them being included.

You of course will not be permitted to raise money during the IVA to prefer a creditor, but hypothetically there is nothing to stop your wife ding this if she can afford to service the additional borrowing, and she is jointly liable for the debts.

Most creditors will require them to receive a dividend first before any payment to associated (relative)creditors - but not always and it depends how the debt was incurred. Melannie is right - we always include all creditors, especially for voting purposes but there are special rules on associated ones and as I have said - the deferment of dividend. Good luck

Thank you for this. I'll speak to my IP again today. If they insist they must be exlcuded I think I have no option but to look elsewhere.

You should definately steer away from anyone who gives that sort of advice. As I said earlier it is for your creditors to be judge and jury and not the IP!

Hmmm - I'm worried now that I may have gone too far with them (and the wolves are getting ever closer to the door).

They have arranged a survey of my home. If I was to switch IP's now would I not get landed with fees for the work they have done?

Not unless you have agreed to pay them anything - and so long as you can present a new IP will a full set of updated documents (ie current creditor balances) there is no reason why they could not begin to act for you at very short notice.

Don't worry and don't panic. Melanie is right most decent IP's don't charge upfront fees and could act straight away if given the information.