Hi
Sorry if I repeat myself but I am not sure where to post this
Would we be suitable for an IVA? Following illness/redundancy/paycut we have around £275 per month to pay debts of around 24,500. There is little equity in our house (1-2K if that) I have two credit cards (one with HSBC, one with Halifax)My wife has one loan, one credit card and an overdraft all with HSBC. Would we be suitable for an IVA?
Or could I get a consolidation loan to cover this amount with this surplas? All payments up to date so far.
It may be difficult to obtain a consolidation loan as there is little equity and the payments on an unsecured one would most likely be much higher than £275 per month. It may be worth discussing your situation with HSBS since they are by far the majority creditor to see if they would be in a position to assist.
There are other options which would depend on the individual split of the debts such as bankruptcies, debt relief orders, IVAs or DMPS. It would be worth speaking to an IP to see if any of these options are suitable particularly if HSBC are not in a position to help.
Hi thanks for your quick reply. I have written to the HSBC on several occassions and so far no help has been forthcoming. We could have a debt management plan with the CCCS but we would rather it all be done and dusted rather than all the hassle etc from a debt plan.
My wife has aprox £16,251 of the debt in her name. House is in joint names and both cars are in my name. If she went bankrupt would we get to keep the cars as they are in my name?
Hi
What value are each of the cars ?
It will be hard to prove that the cars are both owned by you even if they are in just your name. If the value of your wifes is less than 2k she should be able to retain this as she will need this for work etc.
Have a chat with a couple of IVA providers/expets to explore all options.
While I understand you would like your debts dealt with quickly you should consider a DMP as you could repay yur debts in less than 7 years.
Regards
Bankruptcy for your wife does seem to be a viable option and you could deal with her equitable interest for a nominal sum thus keeping the house. If the vehicles are both yours there is no reason for the OR to pursue either unless it could be shown that for example she bought one and gave it to you. In bankruptcy she could keep a reasonable vehicle anyway provided it was required for work purposes.
If you then were left with only £8k on 2 credit cards you could probably continue to service these debts and possibly transfer the balances to 0% to clear them quicker. It would be advisable to destroy and cancel the existing cards to avoid falling into the debt spiral trap again.
With Bankruptcy it wouldnt really matter whos name they are in as the i.p would consider both your circumstances, and remember the official receivers objective is to get as much money for the creditors as reasonably possible.
if your cars residual value, resell or auction value is less than £3000 then you would generally be allowed to keep the car, but with you having two cars, you might have to give up one if its not a neccesity to work or living.
keep in mind that it doesnt matter which one of you goes bankrupt the other spouse will be affected.
Best advice would be to speak to an I.P the amount of HSBC debt is 64% of your total debt level, but if could have a chance of getting past the m.o.c it all depends on how much you can offer.
Personally I cannot see why IVAs for both of you would not be acceptable to your creditors - you get the benefits of a set payment over a set timescale, and no interest or legal action in the meantime. Definately worth talking to an insolvency practitioner who can go through things with you in greater details, so that you can compare the advantages, disadvantages and implications of each option carefully.
I would visit www.iva.com for a list of companies and reviews.
Give one or two a ring and you will receive free and impartial advice as to all the options open to you and the best way forward for your circumstances.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have had my iva arranged through cleardebt and we still have the 2 cars as we both need transport for work. It is well worth speaking to an IP because they will be able to advise on all options available.
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
