Will an IVA help me ?

[Bobby 74]

I am currently in debt to a total of 28,000 on credit cards this is due to my overspending both business and personal.
I have a house with my fiance, of which she is paying the majority of the mortgage/bills etc... as I am trying to pay off the debt. I recently had to take a pay cut to enable my business to continue trading. I now only take home about £1,000 where as before it was nearly double that so I could manage the repayments.

I am now starting to struggle to make all the repayments and I was considering an IVA to be the best way for me to pay the debts off?.

If anyone could give me any helpful advice, it would be most appreciated.

[accgroup]

Hello

An IVA may be right for you. Firstly, and most obviously, are you insolvent? You say you have a house with your fiance - 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.

Are you self employed? You refer to your 'business' - is this a limited company or are you a sole trader? There may also be tax liabilities to consider on top of your credit card debts if you are self employed.

I suggest that you seek professional advice as this way you can provide specific details - who you owe the money to, your employment status, value of property, etc and you will be given the best advice to suit your circumstances. If you talk to one of our advisors at Accuma they will be able to tell you whether an IVA is suitable or whether there are any alterntive options. Initial advice is free so visit the link below for our contact details.

Hope this helps



AccumaGroup
http://www.accumagroup.com - One of the UKs leading debt and insolvency advice firms with over 200 employees.

[Bobby 74]

Hi
Thanks for replying, the answer to your questions are:
We have only just recently purchased the house about 5 months ago so I doubt there will be any equity in the property and there are no other assets other than a car worth about 2,000.00.

I am a director of a limited company so at the moment i take a dividend from the company although I do take a small salary but in total it is a £1,000.00 per month. There are no tax liabilities outstanding from the business.

The debts are purely on credit cards

I hope this helps & I look forward to your reply.
thanks

[accgroup]

Hello

If you are a director of a limited company the first thing you need to check is whether an IVA would affect your position - you need to check the Company's Articles of Association to find out about this or your employment contract.

Since you have no assets it sounds like an IVA would be based on monthly contributions. However, as per my previous post, you need specific advice and to obtain this I would suggest you speak to an advisor at Accuma or complete the quick enquiry form on our website - see below.

Hope this helps




AccumaGroup
http://www.accumagroup.com - One of the UKs leading debt and insolvency advice firms with over 200 employees.

[iva experts]

Accuma is right in saying that 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 to your creditors per month is called disposable income, this generally needs to be a minimum of £300.

It 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.


Hope this information is of use

Regards. IVA Experts