Could an IVA be suitable for me?

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alicia454
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by alicia454 » Tue Sep 11, 2018 6:43 am
i have 13500 of debts. I haven't defaulted yet and perhaps just have 1 late payment.

My income is around 1200, however i will be going to university this year (hense the reason at looking at my debts). My first years student loan will go toward paying the university fees as im not eligible for the first year. I will continue to work full time. the 2nd and 3rd year fees will paid for via student finance and i will get 9k a year as a student loan to live on (plus my work but will drop to pt hours) Im assuming that as SF is a loan it wont be classed as income?

I have a house with a 75k mortgage and 2k redemption. Its worth around 130k.
I have a car loan for a car worth 8k. i travel 65 miles to uni 3x a week and 13 miles to work so need a decent car.
I have looked at remortgaging but as my income is low and my work is zero hours contract i cant remortgage.

i can afford 150 - 170 for the IVA

I am dating at present and im curious to know if she moved in with me / we got married how this would affect the IVA. All the debts were incurred before we met. Her income is 25k plus benefits of 140 p/w and 300 pm PIP. she has a child. would she only have to contribute 50% of the household bills and not be expected to pay for everything? she doesnt drive so can i take the full loan from my income , or expected to pay 50% toward this bill as well?

From what ive read the IVA and all the bad history that goes with it falls off the credit history 6 years after the start of the IVA ? can you confirm this please as in 6 years id like to start looking at buying houses for pension etc and dont want to wait a further 6 years following the completion for the IVA to have a clan history again. This is the 1 reason im thinking of an IVA instead of DM
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Foggy
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by Foggy » Tue Sep 11, 2018 6:51 am
Credit history will start to clear 6 years after the start, assuming that you have completed the IVA by then. Being a homeowner, you will likely get a 12 month extension in lieu of equity release, so the IVA will take you right up to the 6 year mark, and then the final clearing up could take aother 6 months ... then you can start to look at mortgages etc.

Your partner will have to contribute more than 50% of the expenses as she earns more than you and those expenses are allocated between you on a pro-rata basis. However, she is not obliged to devulge her own finances, so most IPs would assume a 50/50 split. One firm, Payplan, might take a different view, as they do tend to rely on HOUSEHOLD income.

Keep your finaces well apart, no joint loans or accounts, otherwise your partner's credit score could take a hit by association.
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Lisa Thomas
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by Lisa Thomas » Tue Sep 11, 2018 10:43 am
Good advice from Foggy.

DMP may take about 7.5 years to pay off based on £150 per month.

Depending on which terms are applied in your IVA proposal a 'standard' (protocol term based) IVA might last 6 years but an IP using R3 terms can be more flexible so it could be less, depending on how the figures pan out when compared to BKY.
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