Can I apply for IVA?

[grace_k]

Can I apply for IVA? My debt is £45000 from 6 different creditors. My monthly income is £1500 (after tax). My outgoings is about £900/mo (not including the monthly payment for all my debts. I had a family problem plus my monthly income just fall because I couldn't get anymore overtime.

I just sold my house last month due to the fact that i couldn't pay my monthly mortgage and insurance. The money that i got from the house (deposit and small equity) is already used in paying my relative and friends who lend me for my deposit a year and a half ago. I never had any problems of paying my creditors in the past. My questions is, do you think my creditors will approve my application after I sold my house?

What if they ask for the equity? They will find out as one of my creditor is where I had my mortgage. Please help me as I couldn't pay all of them anymore.

[123debtsolutions]

Hi Grace

Welcome to the forum.

You can most definitely apply and there is no reason that I can see why you would not be accepted. Of course I, like any other advisors will need more information but if you take a 10 minute assessment you will be told whether or not you have a realistic chance and you will also be given an indication as to the proposed payment terms.
I would advise using a company off the forum.

Regards

Lee
www.123debtsolutions.co.uk

[MelanieGiles]

Hi Grace

Yes, it looks like you have the makings of an IVA there, subject to knowing exactly how much you owe and who to.

With regard to the sale proceeds from your house, in any IVA proposal you have to make a declaration that you have not preferred any creditors during the three years leading to the IVA. The fact that you have used monies to pay back family members, rather than using the monies to effect an equal distribution to all creditors is technically a preference.

Can you let me know who much you have paid back to your family, so I can advise further? Did your family members take any security against your property for the deposit money they lent you?

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

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