www.iva.co.uk

I am thinking of going into an IVA and have ameeting with my IP at the end of the month. I owe about 40K. I dont own a house, and have no assets. I am worried that as I have just moved to the country to be near my family as there are some problems at home, and I am renting off family, and there is no contratc etc, that the creditors wont take it seriously. I have asked my sister to draft a letter detailing the ins and outs of the rent situation, wihch she has and represents a rental contract, but can the crditors just tell me, despite the fact i am here for a reason, that my rent is too expensive and to go live somewhere cheaper (all in, its about 600pcm- and this was negotiated)? Also, I only moved down this month, so do not have a record of being here etc. Additionally, if you have small debts with credit cards, do they have to be included in the iva if you can afford the monthly repayments (if you have £500 for example) or does it all have to be included in the IVA?

Hi and welcome to the forum.

Not sure about you rent situation but you have to include all unsecured debt in an IVA

Hey izzh, welcome to the forum. As Steve has said, you will have to include all your debts in an IVA. I can't see renting from a family member is any different, I'm sure you can get a contract on the internet or from WHSmiths. Hang on for a technical expert though to clarify that. X

Yes i know you can get one from WHSmiths and they are not that expensive. At the end of the day your still renting so it shouldnt be a problem.

Hi

my rent is £775 for a one bedroom flat and accuma haven't mentioned anything.

)

Stephen?!!!! How are you? X

You ought to be paying a market rental for your property, and your sister ought to have the benefit of a formal agreement with you to cover both sides. As Viki says, simple tenancy agreements can be purchased across the counter, but your sister would be very wise to have a lawyer draw up a suitable document tailored to fit your circumstances.

Hi
There is a general rule that housing costs should be no more than 40% of the total income.
If you're under this everything should be fine
Regards

Obviously, where you will be living will effect the market prices, but for what is effectively a room rental £600 sounds a lot to me. My entire detached home costs £595!!
Does £600 include food, bills etc?

my rent per calender month is £550 for a four bedroom detached bungalow.

my iva company seem fine about it.

Hi Izzh

There shouldn't be any problem with your rent if you can afford the montly payments. I pay £600 p/m and that's only for a one bedroomed apartment, there was no mention of my contract either in the IVA.

All your unsecured debts ie credit cards, bank loads should be included in your IVA.

Maz [:)]

FWIW when I entered into my IVA my rent was significantly more than others mentioned and just under 50% of my net income and I didn't have any problems

My mortgage is £1233 a month, and I had no problems with that. I know it's not rent, but it is a significant part of my salary.

Hi
It is 40% of the total household income but,like most things in Insolvency,there is nothing set in stone.
Regards

That plus the secured loan comes to way over 50% of ours, we must have just dropped lucky.