debt management or an IVA ?

[Howard.mm]

Hello,
My business failed last September and my wife and I have been left with around £200,000 of personal debt and debts held under PG's for the business. I have set up a new business and we have had very little income since last September, however we have just won a £250,000 contract which has just started and will therefore start to provide an income for us from next month. The creditors that held PG's are starting to pursue court action towards a CCJ and a charging order over our property (Court hearing 3rd August for first one). We have some equity in our property but not a significant amount. We have 3 young children and my main concern is protecting our property. Because we have had no work we are a few months arrears with our mortgage, however the DWP have paid it for the last couple of months and we have arranges to start paying again from September onwards. I am wondering what our best options are regarding either debt management or an IVA ? Because we have had no income we are about 6 months behind with all of our debts and i have had a debt advisor at our local council writing to our creditors on our behalf to offer them notional payments, some have agreed and some haven't agreed. I am due to start making these payments however i feel i am at a crossroads and cannot decide what is the best option. If i go for debt management i am aware that the debts could be hanging over our heads for many years and i also risk charging orders being placed over our property. However, will an IVA protect our property from our creditors and a charging order? And how likely is an IVA to be agreed for an amount of £200,000 and what would the minimum payments be on that sort of amount? I look forward to your kind advices. Many thanks. Howard

[Adam Davies]

Hi Howard and welcome
I think you should explore the IVA route first as it will protect your house and also protect you from further creditor action.
Speak wityh several experts/companies and explore all options
Regards

[kallis3]

Welcome from me as well.

As Andy says, take advice from an expert. Visit www.iva.com for a list of companies and reviews and you will receive free and impartial advice about all the options open to you.

[MelanieGiles]

It is great news to see that you have a new contract with your new venture and that this is giving you the ability to move forward and deal with your debts. Whether an IVA is an option for you will depend upon your actual circumstances, but when you have large business debts this is likely to be a more preferable option than the uncertainty of a DMP.

I have lots of clients with debts in excess of £200,000 - some with debts in excess of £2m so get some advice from an IP who specialises in dealing with trading businesses and you will at least then know what options are available to you.

[Michael Peoples]

Should you proceed with an IVA your IP will be able to get a court order stopping the charges being made against your property. This would not be possible in a DMP so you should at least speak to an insolvency firm.

[Andrew Graveson]

Hello Howard.mm,

I agree with the other posters that you would have considerably more protection from your creditors via an IVA in these circumstances.

[Tina Shortland]

Hi Howard,

To answer your last question, if what you can offer to the creditors is favourable to them they will accept it. The creditors will want to see that as a family you are doing everything you can to help clear these debts.

A good IP with a proven track record in high level debts and representing those in business will present the best case for you, if indeed and IVA is the best route for you.

The first step is to work out realistically how much you can afford each month, after normal living costs - and with 3 young children we need to ensure you have thought of everything!

Regards,

[Shining]

Hope it works out well for you and the professionals who do post on the forum come highly recommended and can be found via the experts link .x