www.iva.co.uk

Hi I would like some advice for my Fiancee please,he has around 45k worth of debt from a total of 5 creditors, He is looking in to an IVA but I would like to know whether he will be suitable for this? We bought our first home together last year and due to the current climate we are in negativity equity - I would also like to know how this would affect me in terms of my credit ratings etc,Many thanks

Hi Laura, and welcome.

His suitability will all depend on what disposable income he has. I would advise that he phones an Insolvency Practitioner and discusses it with them. They will discuss all options open to him. If you look on www.iva.com, there are a lot of companies listed on there. Get him to give two or three a ring.

I don't think your credit rating will be affected, but your income will be taken into account (purely for the amount you pay across for housekeeping), if your fiancee does an IVA.

As to house, there is normally a clause that requires you to try and remortgage in the 4th year of your IVA to release some money towards the IVA. If you are unable to remortgate, then the IVA usually continues for another 12 months.

An IVA nay well be a solution for your partner, but there will be others depending on how he intends to prioritise aspects of his finances over the next few years.

The provisions relating to your propoperty, these days are more usual to require a revaluation of the property halfway through the final year, with a view to raising equity based upon 85% of the value of your property, and subject to ongoing affordability. This, of course, only relates to your partner's share.