www.iva.co.uk

Hi

My partner is considering an IVA. He has a loan, a credit card and an overdraft, all with HSBC totalling over 22K.
Can he go for an IVA as there is only one creditor?

Thanks

Hi and welcome.

I'm not 100% sure, but I think he has to have two or more creditors for an IVA.

One of the technical experts will be along to confirm or not shortly.

Hi
Two different creditors with at least three lines of credit.
I think that an IVA will not be an option for your partner.
It may be better for them to contact HSBC directly and agree a repayment plan.
Regards

It is unlikley that HSBC would accept an IVA with them being the only creditor. It might be more sensible to see if they would consolidate all of the debt into one loan, which you could then pay off subject to your current affordability. Banks these days want to help their customers to resolve their difficulties, and I am sure that any approach to the bank will be welcomed by them.

I agree - you need debts from 2 or more creditors with as Andy says 3 lines of credit. Talk to HSBC and discuss appropriate repayment plan with them.

Hi

In addition my partner is going to have his house re-possessed, and will face owing his building society the shortfall as not only is he in arrears, but will also be in negative equity. Would this count as a creditor?

He can not offer the HSBC any money as he has no income.

Thanks

If he has no income then an IVA is not appropriate - has he considered bankruptcy?

Yes he has but would prefer an IVA if possible.
He hopes to start work at the end of January

Well if he starts work and has a reasonable disposeable income available for an IVA then get him to start talking to an IP firm to discuss in detail his exact circumstances - by the way the shortfall from the Building Society could be his additional second creditor!

Many thanks all

With bankruptcy he would be debt free straightaway. If he did start work in January, then he may be asked to pay some of his disposable income across for 3 years, but that would be all. He could be discharged in as little as 12 months and be free to start again.

Until he definetly starts work, he will be hounded by creditors.

The mortgage shortfall would need to be taken into account as a contingent creditor if he were to propose an IVA.

Sorry what is the difference betwen a creditor and a contingent creditor?

Thanks

A contingent creditor relates to an account which is not yet due, but where you may owe some money in the future. ie the current mortgage shortfall is not a debt until the property is sold and that debt can be crystallised.

Bankruptcy is an option but has, in my opinion moreunfavourable connotations with it than an IVA. Yes you are free of all debt and you might be saddled with an Income Payments Order/Agreement for up to 3 years - but??? It is up to you in the end