Would really appreciate some advice.

[i_a]

I have large debts mostly built up when I was married (now divorced). I sold my house 2 years ago and used my part of the equity to pay off some creditors.

I want to propose an IVA (I have no assets now and a good job) but what will my creditors think about this? I think I could afford a 30p to 40p dividend to my creditors on current earnings.

Also I work for a UK retail bank who are one of my creditors (but less than 10% of total creditors). Would I lose my job with them?

Would really appreciate some advice.

[DebtDummy]

Hello ian and welcome. You work for a UK retail bank who is also one of your creditors. I am not an expert, but as far as I am aware an IVA is acceptable to all employment areas. As for your employer being a creditor and the effect that may have on your job, I do not know.

Get professional advice from an IVA expert. Contact about 2-3 different companies and ask them.

An expert will come along shortly and give you further advice on this matter.

Good luck!

All I have left is my humour.

[Oliver]

I would advise that you contact your HR department and read the Terms and Conditions of your employment contract. If there is potential of you losing your employment if you include your employers debt in the IVA then you may be able to continue paying them outside of your IVA. This would need to be agreed by your other creditors.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

Hi Ian

As advised by Oliver, the terms of your contract are key here. I have acted for bank employees before, and left a bank debt out, on the basis that your job might be jeopardised, but this must be fully disclosed within the IVA proposal.

Good luck

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[i_a]

Thanks everybody for the advice. I will look at my contract.

One more question - I have some shares from my bank that re in a plan for 5 years. I can't draw them out at the moment but could the bank take them in payment (which would virtually clear their debt) or would they have to be disclosed as an asset in the IVA? (vlaue of shares about £8K).

Thanks

[jamesfalla]

Hi Ian

With reference to your shares in the bank, I assume that these are some kind of share save scheme. Again you are going to have to look at the terms and conditions of the scheme to find out what happens to them if you become insolvent and owe the bank money. You may find that the bank has rights in these circumstances to offset their debt against this asset.

If the bank does not have a claim on the shares, then if they come to maturity while you are in your IVA, they may well be seen as an asset which would have to be realised for the benefit of your creditors.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

[MelanieGiles]

Ian

You will also have to be prepared to stop the share savings payments from your salary to ensure creditors are receiving the maximum return from your disposable income.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[i_a]

Thanks for the advice.

One final thing. I've downlaoded the BBA Income and Expenditure spreadsheet to do a budget and it does ask about other income form members in the same household.

I've recently moved into my girlfriends house and she has her own business (sole trader). I do not want her included in any of the IVA calculations as she has nothing to do with the debts. Is this okay to exclude her.

Would I be okay to just say I am just renting and paying half the bills (this is what I am doing)?

Also if we get married in the near future would that need to be taken into account in the IVA?

Sorry for all the questions!! My situation is pretty complicated!

[MelanieGiles]

You need to be really honest when you fill in those forms. If your girlfriend and you are sharing the bills, you just need to put your share down, but ensure that you are both paying a fair amount.

For instance if your earnings are £2,000 per month and hers only £1,000, then you should pay 2/3 of the rent, utilities and general housekeeping costs.

As you are only in a relatively new relationship, I suggest you treat your circumstances as two flatmates would rather than a married couple. If you are paying her rent, make sure there is a proper agreement in place as your IP will need to examine this.

If you marry, then your combined income will be taken into consideration - but don't let that influence you to put your life on hold. There are more important things ...........

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[i_a]

Thanks for the advice Melanie.

The worst thing at the moment is my partner doesn't know anything about my situation and I'm dreading telling her. I know it's got to be done but it's so hard.

One more question - do creditors take account of the total amount owed? My debts are huge (six figures) -would they reject an IVA on the basis that I've built up such huge debts and should have done something about it a long time ago?

As I don't have any assets (not even a car) isn't an IVA always going to be better for creditors than bankruptcy in my case?

[MelanieGiles]

Creditors will look at your proposal on its own merits. They rarely pass judgement on the amount of debts, but are just keen to see that they are getting the best deal. I have often put forward IVA proposals with this level of debt, and not encountered problems.

I am sure that your partner will be sympathetic when you tell her about your financial difficulties, and will understand that there were reasons for the debt. She is likely to be proud that you have decided to do something about it.

Let us know how you get on.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[i_a]

Thanks Melanie you have been a great help.

I know I have to do something about this right now as I can't maek minium payments on the debts any more and will be defaulting on some of them this month.

I've applied for a bank account with a non-creditor this morning. What should I do now?

[MelanieGiles]

Decide who you want to represent you in proposing an IVA and get the ball rolling. There are several expert IPs and debt management companies involved in this forum, so that would be a great starting point.

Good luck and don't forget to let us know how you get on.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[DebtDummy]

ackeryi, telling your partner will be one of the most difficult things you have ever done in your life. Keep remembering that she loves you. She will understand your reasons as to your indebtedness and extend compassion. Surely, she shared in your 'good times'. Knowing this, she will share in your 'bad times'. You are 'coming clean' with her and she will appreciate that fact. And that's the good bit. You are an honest person at heart and I am quite sure she is aware of that already.

In the end, your future will be a debt free one. Be proud for not sticking your head in the sand and pretending it will all magically go away. You are taking positive steps to resolve your debt issues.

You take care and I wish you luck. Keep posting to share your experiences with others. We are here for you because we have all been there and understand what a stressful time this can be.

All I have left is my humour.

[i_a]

Thankyou debtdummy I appreciate the post.