What is our best option?

[oak666]

Hi,

My wife & i have unsecured debts ammounting to approx £27000, our list of creditors is as follows:

Mine
Lloyds TSB £18000 (personal loan)
Lloyds TSB £100 (overdraft)
Capital One £800 (credit card)
Virgin (MBNA) £3290 (credit card)
HFC bank £1500 (hire purchase)

My wifes

Lloyds TSB £3700 (personal loan)
Lloyds TSB £300 (overdraft)

At present we are claiming jobseekers allowance coming to approx £360 pmonth, Child benefit of £120 pmonth & child tax credits of approx £280 pmonth. Up until march last year (2007) i was working full time and had a fairly decent wage earning £14800 and we were also getting working & child tax credits as well as child benefit so we could comfortably repay all our borrowing. I lost my job in march but could not claim any loan protection etc as i was not made redundant so my wife started work and we carried on just about managing to make the repayments. In October she was made redundant so she is now claiming on her loan insurance but we are really struggling to make our other repayments (as of yet we have no arrears). My question is what would be our best course of action as i have been reading about IVA's and that they are unlikely to be accepted if your main source of income is made up of benefits.

Sorry for the essay but i wanted to try and get as much info regarding our situation as possible!!

[Adam Davies]

Hi
You would need to be working to enter into an IVA.
You should consider contacting your creditors and asking for some help whilst you seek work.You could also look at a debt management plan or bankruptcy
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp