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Over the last few months we have noticed that it is getting more difficult to meet all our monthly commitments, even though we have cut back. This month we have had to take some money from a credit card to cover bills but we are not yet in the situation that we are getting letters and calls from creditors. Can we still apply for an IVA even though we are meeting the monthly payments?

Hi sueeg and welcome to the forum

The question you have to ask yourself is are you paying your debts from your own earnings, or are you relying on other people's money to make the payments - ie extended lines of credit.

If the latter, then you are insolvent and may need the benefit if professional advice with regard to your situation. You can apply for an IVA if you are borrowing money to meet the repayments on other creditors, and it would be wise to take advice from an insolvency practitioner before the situation gets any worse.

It may be that with just some careful financial restrucuring you can work out a debt repayment programme with your creditors without resorting to formal insolvency proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

I suggest you contact your local CAB who may recommend an Insolvency practitioner.

If you are finding it difficult to meet payments it is better to act now before it becomes too difficult.

Hara