www.iva.co.uk

which is wiser,borrowing on the house to offset the debt if possible or taking on an iva?
also can you recommend any good iva companies as we are very sceptical after reading some of the woe stories on the blogs.Thanks

Hi Faith and Welcome to the Forum,

An IVA may be right for you. Firstly, and most obviously, are you insolvent? You say you have a house - is there any equity? Do you have any other assets?

If the answer is no then an IVA would be based on monthly contributions, usually over a period of 5 years. The level of the contributions would depend on how much you can afford, taking into account your monthly expenditure.

The amount you can afford to pay back your creditors is called disposable income which is calculated as follows:

Your monthly income -
Your monthly general living expenses (i.e.: rent, bills etc)
=
Your monthly disposable income.

Generally creditors will require 25% of the debt repaid in full.

What is your estimated amount of debt?

Hope this information is of use

Regards. IVA Experts

at the moment we owe about 92k(inclusive of the interest)There is no equity in the house as at yet.many coys have recommended iva a but we donot know how good they are ,hence why we are asking to be referred to one.

Firstly you will have to determine if you are insolvent. This would mean that you had neither the monthly disposable income (income less living expenses) to pay your contractual payments or the equity in your house (the value of your house less any secured loans) to cover your debt. If the answer to either is yes then you are not insolvent and not eligible for an IVA or Bankruptcy. In this instance you would have to take out a consolidation loan (secured or unsecured), enter into an informal debt repayment plan or sell your house and pay off the debts.




Best Regards
Oliver

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

It seems as though we posted at the same time so my last post is now rather redundant.

If there is no equity and you can't afford your contractual payments then clearly you are insolvent and as such an IVA may be the best course of action for you.

I would reccomend that you contact 2/3 companies to discuss your options, choose from the companies that regularily post on this site.

Best Regards
Oliver

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

thaks for your response we are insolvent.however iam on maternity leave and ready to return around july.can we still go ahead with the process?some companies say it is ok pls confirm.thanks

hi keep getting mails to say ihave replies but can't view your responses pls advice

Hi faith and welcome to the forum

If you have equity in your property, which would cover your outstanding debts, then it would be sensible to release some as mortgage interest rates are far lower than credit cards and loans.

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

thanks mel there is no equity in the property yet.

iam on maternity leave and ready to return around july.can we still go ahead with the process?some companies say it is ok pls confirm.thanks

Hi again

See my blog for tips on finding the right IP and questions to ask to enable you to make a decision. Read other forum posts to see who everyone else is recommending, and to benefit from their own individual experiences.

What disposable income do you have available to make payments to creditor via an IVA. Providing you do not owe substantially to either HSBC or Northern Rock, and IVA will generally work if you can afford to make payments of around £530 per month. I have a form on my website which you may find useful to note down the usual areas of household expenditure, and don't forget the contingencies such as car and house maintenance, medical expenses and miscellaneous.

And do make sure you consider other options - ie a Debt Management Plan (I probably would not recommend this given your high level of debt) or bankruptcy proceedings. The latter is a real option for you if there is no equity in your property, but I appreciate you might rather repay your debts than go down this route.

Let us know what you decide! And good luck in your search.

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 would like to be able to repay what i can afford.What is with hsbc and northern rock pls advise.

If you agree that an IVA is best for you then there's nothing stopping you getting the ball rolling now as the process from agreeing that an IVA is your best solution to having your proposal accepted by your creditors can take some time.



Best Regards
Oliver

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

Northern Rock and HSBC have higher minimum dividend expectations than other creditors. You will need to pay at least 40% of your debt back if you owe these creditors and they represent more than 25% of your aggregate debt.

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

thanks for your quick response.