www.iva.co.uk

IVA DMP or bankruptcy?

I owe approx:
£23K to Natwest unsecured loan
£4,800K to Natwest credit Card
£2K to Lloyds credit card
£1K to Barclays credit card
£10K to Virgin credit card

Live at home with my parents which I pay £350 a month for rent, have car insurance at £77 per month, pet insurance £42 per month, phone £35 per month, £20 gym per month then would have general living expenses. My salary is approx £1350 per month

If the rent includes all those extras like council tax, lecky,food? etc etc then you probably have a fair bit left over?

If you do a detailed income /expenditure might help. (things like car tax, car maintenance (£35?), contingency (£50?), hobbies n stuff (£50? (less gym), petrol (?) etc etc)

Once you have a figure that looks realistic then it might be a bit clearer. You might not even need a "formal" solution.

Hi
It is possible that all options are open to you.
You really need a detailed look at your situation so that the right advice can be given
Regards

At this stage, if you are unsure of your options, I would recommend discussing this with an insolvency practitioner who will be able to understand a little more about your personal circumstances on a one to one basis, and be able to explain the advantages, disadvantages and implication sof each option so that you can make a reasoned choice about your future.

One key think you will need to do is prepare an income and expenditure account to see exactly how much you feel that you could afford to offer to creditors on an ongoing basis, as well as considering whether it is viable to continue to live at home for the next few years.

Thanks for your answers, Melaine i will be contacting your firm this week for help

The appropriate advice of either an IVA or Debt Management Plan can only be given once you give full details to an Advisor. Look at www.iva.com where several are listed with reviews. Good luck.

Thanks David, I will call three companies for advice

It will not be viable to live at home for the next few years. Will this be taken into account/review of the IVA once this happens?

Also I know that my money would be budgeted and there is a contiguous amount – what if I do not spend the full amount each month? Would the IVA be expecting more money from me? Or could I save it for something? Like xmas presents etc

You would have to mention your accommodation concerns to an IP for them to advise you.

If you don't use all your money, it is acceptable to put this to one side for such things as Christmas etc. You can have a small amount of savings.

How do you feel that not living at home is going to affect your potential disposable income?

You will be allowed a contingency allowance which is yours to keep regardle4ss of what it is spent on.

That’s good about the contingency allowance.

Not living at home would impact my disposable income as I would be paying all bills etc on my own. Say I was 6 months into the IVA and this happened – could it be revived?

How much doe you feel the difference in renting externally than living at home would be? If you know that you are definately going to move out then this could be written into the proposal, so long as you had good reasons for relocating.