Is an IVA the best option?

[peter.t]

My son & partner (early 20's with young child in rented accomodation) have an income of £1817pm (incl child credits etc.) Outgoings are £1490 plus £407pm minimum payment to 3 credit cards & bank overdraft fee. So outgoings £80pm more than income. Credit cards balance is £14350 and overdraft £2450.
I can only afford to give them £1000. Is an IVA the best option?

[MelanieGiles]

Hi Peter and welcome to the forum

An IVA may be one option but there are others. Do you have any assets of material value - house equity, car which might be affected under bankruptcy proceedings? If not, then this is also an option for you, as is formal debt management.

When you say you can give them £1,000 what do you actually mean?

[Kazzy E]

Hi Peter, welcome to the forum. Have I read this correctly, you are asking the question on behalf of your son and his partner and you can give them £1000 to help them out but you feel this may not help them in their situation? Sorry to sound dim, but hope I've read it right? Kazzy x

[Viki.W]

That's how I read it too Kazzy. Welcome to the forum Peter. You sound like a great dad. I would hold on to your money and get your son and his partner to give Melanie a call to have all their options discussed with them. X

[peter.t]

Thanks for your responses Melanie, Kazzy & Viki.

Melanie - I do have house & car but how is this affected by my son's situation? As I say, my son lives in rented accomodation (has car value circa £2k).
When I say I can give them £1k I mean that I can today transfer £1k from my bank account into my son's.
Formal debt management -presumably this is at a cost?

Kazzy / Viki - Yes I am posting on behalf of my son as he has asked me for advice. I can give him £1k cash today but feel against the total debt of £16.7k it's a drop in the ocean.

[Viki.W]

Hey Peter, I think a debt management plan or Bankruptcy may be the options for your son. Why don't you give him Melanie's details, best him speak to someone on the phone. I would keep the money, if he opts for Bankruptcy then you could offer him the fee £495, I'm sure that would be a big help for him. Personnal, I think he may be better with a DMP, Please hang on and an expert can advise you. X

[MelanieGiles]

OK - I now understand the post - sorry I misunderstood your first post. Viki gives good advice, and your son and his partner ought to seek professional assistance in order to understand what options there are for them.