Help please

[fedup and broke]

I have been in discussions today about an IVA. The company have advised that not all my debt has to go into the IVA however I do have to declare it so I can show the repayments. Is this correct? As I do not want to include the HP on my car as I use the car for my business and I cannot downsize or use public transport. Any advise would be helpful.

I am also in partnership with a member of my family - as a business we have an overdraft but again I do not want this included.

I am totally confused!!

[fedup and broke]

Just to update my debt is £47500 and they have advised me my repayments will be £242 per month then will go up once the HP is completed on my car. My income is only £1000 per month.

[aguise]

Hi ther fed up and broke. Hp is not included and as you say the car is necessary for work, so this is generally allowed as part of your expenditure. Payments then go up when the Hp finishes. All your unsecured debt should go to the iva. I am not a technical expert so wait for other answers. Ask about anything you dont understand and keep asking until you do. I found it useful to right down things as I thought of them and then I didnt forget, when I spoke to my company.

Ang

[MelanieGiles]

Hi there

IVAs are only to deal with unsecured debt, and therefore as Ang has already stated the HP will be left outside the arrangement but you will need to build the ongoing payments into your budget and be prepared to increase your IVA payments when the agreement has concluded.

[fedup and broke]

Thanks Melanie,

How will this affect my business. We have a separate business account in the name of our business however this is with Lloyds TSB who I hold a current account with. Would it be worth taking my name off the business ?

Obviously I do not want the IVA to affect my business at all. We are a floristry business.

Thanks

[MelanieGiles]

Do you trade in partnership? If so you will need to have both partners jointly responsible for the business account - but I do hear on the grapevine that Lloyds are quite supportive of allowing business accounts to remain open even after an IVA has been accpeted, so it might be a good idea to arrange a meeting with your account manager to discuss this possibility.

[fedup and broke]

Hi Melanie, yes we trade as a partnership. The bank account is in the business name and we do not own any other money on the business expect for a 2K business overdraft.

[MelanieGiles]

Best to talk directly with bank about ongoing faclities - but as there is little risk and no other borrowings you may be lucky to be able to retain the account. Do you need to be able to take credit and debit card payments?

[fedup and broke]

Yes we have a card machine provided by Lloyds.

[MelanieGiles]

It may prove difficult to change banks at this stage, or to find a bank prepared to offer you business banking, so I would try and persuade Lloyds to support you if you can. Is your business partner aware of your current financial difficulties?

[fedup and broke]

Yes she is my sister. Do you think it would be better to put my part of the business in my boyfriends name to be safe

[MelanieGiles]

Does the partnership have any value? If so you can only transfer your share for full market value. What was the balance sheet position at the last financial year end, and the position regarding your capital and current account (in the partnership).

[fedup and broke]

we have only been trading since sept and at present only breaking even with paying ourselves and our bills.

[MelanieGiles]

Then you could effect a transfer of your share of the business to your partner for a nominal sum, if he and your sister were willing. Could you then become a direct employee of the business?

[fedup and broke]

Yes i could continue to be employed as a self employed florist. They would then continue to pay me so I can make my payments I need.

I am very confused with it all and was feeling relieved earlier today - now having read the forum for most of the evening I am confused as what to do. I called Halifax yesterday evening who I have a credit card with an outstanding balance of £17500 and they advised me to go for an IVA. I just do not want this to affect my business at all, which could become profitable over the next few years which would mean I could pay more to an IVA.