www.iva.co.uk

Hello everyone,
i am new to the forum, so be nice!!! i will try and give you my details here to see what you think is my best course of action, As of this month now that my company has new owners all overtime has been permanently stopped so with my income at its basic i am no longer going to be able to pay all my debts. Although before i was only just breaking even. My income details are now as follows.

My income £1220.00 per month
Expenses £620.00 per month

I have a mortgage which i have included in my expenses and my house has approximately 15 - 20000 pounds equity.
My creditors are as follows

Here is a list of my creditors amd amounts owing

Natwest personal loan - £20070, £456.14 per month with 4 years left
Natwest Credit card - £5900, £140 per month
Halifax Credit Card - £11000, £220 per month
Benficial Credit card - £950, £30 per month
GE Capital Loan - £2500, £75 per month with 6 years left
Student Loans - £6200, £0 per month - Dont pay back yet as old style student loans

All accounts are up to date and i haven't missed any payments

I cant re-mortgage to release equity for another 2 years as i am in a fixed rate mortgage with quite a large penalty fee for leaving early, Would i be able to go in to an IVA or dmp that would help me make a more manageable payment each month but still pay most or nearly all of the money back, i do not mind remortgaging once my fixed rate period is over so would i be better off with an IVA that lets me release equity near the end of its term to finish paying the creditors?

Thank you for your help
Patrick

Hi Patrick and welcome.

It sounds as though either solutions could be ok for you, but I recommend that you speak to an IP to get proper advice. They will tell you of all the solutions open to you and advise you as to the best way forward.

Visit www.iva.com where there are lists of companies you can contact. Some advisors post on here, like Melanie Giles, Andy Davie, VikiW, Size5 to name but a few. Their details can be found on the experts link on the left hand side of this page. They come highly recommended.

Cheers kallis, am off to work in a little bit (no rest for the wicked!!!!) so will wait and see if i get a reply off of melanie or anyone this afternoon and then ill be on the phone tomorrow morning.

Hi Patrick and a warm welcome to the forum

It is sad that your new employers have cut the overtime you have been accustomed to earning, but I think most businesses are feeling the pinch at the moment, and overtime is usually the first thing to go.

My first reaction to your post is that your expenditure looks very low at £620 for someone with a mortgage. Have you included all of your expenditure in this figure - including housekeeping, clothing, running your car, all household expenditure and standing orders. As well as the known outgoings, you will also need to make a provision for contingencies. An IP will be able to take you through all of this, and advise you on the sort of allowances you ought to make to ensure that your future repayments are affordable, and you be allowed to maintain a reasonable standard of living. Do you live on your own, or is anyone else contributing to the household as well?

The creditors that you detail are largely amenable to IVA propsals, albeit the Student Loans company are not. Given the level of their claim, they could be easily outvoted were you to propose an IVA to creditors, but you could also consider a DMP as well which would see your creditors eventually repaid in full - but over possibly a longer period than the 5 years of an IVA.

You will need to address the equity in your property during the final year of an IVA, by seeking new lending at a maximum 85% loan to value, and using any surplus raised to pay into the IVA for the benefit of creditors (subject to affordability). A DMP would avoid the need to do this, but of course it could take you longer to pay off.

I would recommend a direct chat with an insolvency professional to explore these, and other, options further.

Have a good day at work Patrick - I am sure one or more of your contacts will be in touch soon.

Melanie and Kallis thanks for your replies

Melanie, will i be able to phone your office tomorrow morning to have a chat with someone to go through all of this? I would prefer to have everything completed in 5 years, (the sooner the better!!)

Yes - the office will be fully manned all day.