www.iva.co.uk

Hi - Can anyone give me some advice please? I feel like I'm at the end of my tether and I dont know what to do next. I am currently on a dmp. I was, until last month, with a fee charging dmp company. they have however, managed to totally mess it up with my halifax visa card. All the time they kept telling me all was well, but actually it wasnt and halifax had not accepted my payment proposal. Due to this, i am not allowed a 0% interest rate, only a 1%. This is a 14k debt. I had worked out that i could get this paid off in around 5 years. (i need to - my northern rock fixed rate mortgage ends in 2012 and i have no idea how much the increase will be or how i will afford it.)
now, with a 1% interest rate, I'm going to paying off the halifax forever. I am considering an IVA but really not sure i can do this, for the following reasons:
a) i have an unsecured loan with NR for 20k (joint name with my partner). Would they accept an iva? They are not included on the dmp, as advised was ok by national debtline. (b) i have a 1300 debt with black horse. Not made 12 full payments. (c) i owe student loans 7k. Will they accept an iva? (d) would halifax accept? (this is all my debts)
I feel like my life is ruined. I have no kids, and at this rate i'm never going to have any. I'm 36. Please could someone point me in the right direction? I dont think bankruptcy is an option as we would lose the house, and i cant do that to my boyfriend. Thanks.

Hi Kirstyo and welcome to the forum

First of all, you may find the way interest rates are going, that you will be better off when your fixed rate mortgage expires. So that could improve your ability to repay.

Secondly, it would be better if you sought advice directly from an insolvency practitioner with regard to the possibility of an IVA. Is your partner in a position to repay the Northern Rock loan on his own, and could you confirm how much you actually owe in total over which number of creditors. Also how much could you afford to pay each month to these creditors, were an IVA to be possible?

hi, thanks for your reply - no he couldnt pay the full £170 per month on his own of the NR loan. My debts are: NR - £20000 (joint), Halifax Card - £14400, Halifax OD - £2200, Black Horse loan - £1300, Student loans £7k. Thanks.

Hi
Student Loan Company will generally vote no but will be bound if you get sufficient yes votes.
It will all come down to NR who will have the deciding say.
Has your partner any other debts and how much equity do you have in your house ?
Regards

If Northern Rock can see your partner paying a proportion of the debt on an ongoing basis, they may well be prepared to agree to an IVA depending upon your circumstances.

Whether an IVA or a DMP is the best option for you, can only really be decided by you personally, and depending upon what you can currently afford to offer, you should compare the timescale of a five year IVA over the length of time it will take you to clear all of your debts in a DMP - coupled by the fact that creditors will not be allowed to take any legal action against you if you are in an agreed IVA.