www.iva.co.uk

Hello all,

I'm about to start looking for an IP so my first question is can you recommend any particular company for this bases on reviews or experience?

So... a little about my situation! I've on a DMP for over 2 years now and while it is certainly manageable and mostly stress free it is not helping me move on with my life. I have £40K+ of debts at the moment and windfall aside I have no real hope of paying that amount back.

Some of my debt is from my youth and some from gambling when I wasn't so young but it was certainly the gambling that took me past tipping point of what I could reasonably afford to pay.

As things stand I currently live with my partner in her house, I do not own any property at this time, I have a regular job and can afford to make repayments but I am dubious about how entering into an IVA will affect my partner, all of the debt is mine so I don't see how it should be her problem too but I fear it is not that simple. My wage is paid into my account on a monthly basis, a few direct debits are taken and cash removed for maintenance payments then the bulk is transferred into my partners account to help with the bills leaving me with my spends for the month. This being the case I do not pay any gas, electric, mortgage at present. Please can somebody explain how this will affect my partner?

Thanks

Jon

First I would say there are a couple of companies that will base your repayment on household income, rather than just yours. This means your partner is effectively paying some of your debt.

Also some companies will take the stance that you have acquired an interest in the house -- which you should try to avoid. This is a question you should discuss right at the outset.

Your partner shouldn't be unduly effected as long as you have no joint accounts or anything to link you financially. They will want to know her income to work out your share of household expenses -- if she would prefer not to give that information they will assume a 50/50 split.

Hi and welcome to the forum. By taking an IVA you'll have an end date so that you become debt free and be making the best offer possible to your creditors.

As Foggy correctly suggests do talk from the outset with a professional how this will affect your partner and the property.

I'm sure others will be along and maybe suggest a few companies to call and chat with.

There are a few ways to do this so make sure it is done correctly. If the I&E is done on a joint basis it could show you contributing towards the mortgage which means you could be acquiring an interest in the property. Even if this is not proven I have seen creditors ask for an extra year so if you do not contribute towards the mortgage then it should not be shown that way.

If you effectively pay 'keep' this could be an easier way to do the IVA as you will not acquire a beneficial interest and your partner has no need to provide any income evidence.

Get some free advice and see what each IP firm says.

Hi Jon I agree with the others you should seek advice from an IP. Most will give you initial advice for free. Depending on the full picture Bankruptcy may actually be a better option for you.

Bear in mind that a DMP or IVA totals years worth of commitment.

Knowing what I know now I would probably have considered the bankruptcy route more except pride got in the way - the consequences are the same (your credit rating is trashed) but it would have been over by now.

The length of time should be something that you seriously consider.

I was with Payplan & they will take your household income into account so your partner will be 'paying' to clear your debts.
If you can make it clear that you have no claim on the property maybe bankruptcy would be an option.

Not necessarily paying your Debt , household income taken into account however it is split in proportion to individual wages ie mine is proposed at 49/51 for expenditure then the disposable income is split the same ie partner retains their split and yours forms the payment offer so only your disposable income feeds the IVA ,

Payplan work slightly differently in that the incomes are combined from the start and they use the household income to contribute to the repayment.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy

Payplan work slightly differently in that the incomes are combined from the start and they use the household income to contribute to the repayment.

ah I see! That's not very fair though !

Not fair at all -- they take the view that the household have had the benefit of whatever the debt purchased so should contribute.

To be fair, they might have changed policy of late ... my jaded view of them is based on a conversation I had with one of their representatives on another debt forum (before I was removed for constantly referring to this forum!). How true this is I do not know, but he even suggested that the incomes of working children at home should be included. That could just have been a result of him losing his rag with me !

Some people need to know the difference between intra and ultra vires - always a good rule of thumb to make sure you self check and don't talk out of your backside (and this is aimed at who Foggy was referring to).

As he was acting officially on that forum he should have stayed "intra" ..... but I doubt it.

Mind you we all, myself included, go a bit "ultra" now and again

The'working child contribution' wouldn't surprise me based on the views of another member who I suspect has links to Pay plan!

Slowlygoingunder - Foggy is correct, my partner didn't get to keep any of his own disposable income, it was all used to pay the IVA.
One of the reasons I would never recommend Payplan!