www.iva.co.uk

Hi. I emailed you earlier on but I gave the wrong email address for a reply. I have now registered so hopefully I will now get a reply. I was dismissed from my job 6 months ago for something I did not do. I have 3 unsecured loans and 1 credit card with just over £5000 owed on it. I have negotiated with the companies (including my mortgage) for temporary arrangements until I get a job. The problem now is after 6 months I still have not got a job, more than likely as I have a dismissal on my record. The companies are now starting to pester me for continuation of full payments and clearance of the arrears. Can I start an IVA if I am unemployed and on benefit as I have £200 disposable income left per month. Also I am thinking of going self employed as I am not having much luck getting a job, can I start an IVA if I am self employed and will I have to be trading for a while to prove me earnings.I have written to the loan companies for an up to date balance and to my credit card company. My loans I estimate to be between £30K & £35K and my credit card over £5K. Any advice you can give would be greatly appreciated.
Thanks Paul

Hi there and welcome to the forum

I am afraid that an IVA can rarely be proposed for someone who is unemployed, unless you are realising an asset or offering a third party contribution in full and final settlement.

If you decide to go self-employed, you will need a pretty strong business plan and at least a couple of months trading under your belt before you start. I would have thought a short-term DMP would be your best bet if you wish to avoid bankruptcy proceedings, until you get back on your feet.

Debt Management Plan is advisable pending setting up your self-employed business. Once your self-employed business has been up and running for 3 to 4 months you might then be able to persuade an IP to advise an IVA. But your business Plan must be good and reasonable robust - then it can be compared to actual figures for the first 3 to 4 months