Hello,I am new here and would like a bit of advice if poss.I have debts of around 30k these are borrowings on loans and credit cards to help continue in business I have a business partner already in DM and so the borrowing was left to me.Due to the lack of work I am thinking of an IVA but not sure how they work been that I am S/employed.And once set up will anyone go after my house,or is it a case of an agreed amount each month and thats it for 5 years.My house will prob be worth 250k and I owe 187k.The other option would be Debt management but when does that end once a monthly amount is fixed when does it end.and once again does my house feature in the equasion...thank you
If you have more equity than debt you're not technically insolvent and and IVA would not be a suitable option. There will however be a solution for you and to obtain some impartial and free advice, why not take a look at www.iva.com for a list of companies and some reviews of these, it's always best to contact 2 or 3 to ensure you receive impartial advice.
Worth talking to someone to get all your options. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
It could be that a DMP is a more suitable option for you.
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
Hi
An IVA is based on how much you can afford to repay usually over a five year period. Payments are set normally for a year but will change if your disposable income changes.
Is the house in joint names ? if so an IVA may still be possible as your share of any equity may be less than your unsecured debts.
Your house is safe as long as you pay the mortgage but in an IVA you may have to release some of your equity in the final year by way of a remortgage.
A debt management plan will run until your debts are repaid, your house will not form part of the plan but creditors are still free to take legal action if they want to.
Have a chat with several experts/companies and discuss all your options
Regards
Thank you for the advice,when you say my house wont form part of the plan,but creditors are free to take legal action,could they then go after my house,or assuming they agree to the DMP once agreed can they change their minds later and then go after my house.I would be happy to pay off my debts given the time but just need to know the future over my house.
thanks again
If creditors do go for a charge against the property they still normally accept the DMP payments but at least now they have security. However, if you are self employed there is a possibility of debts to HMRC which have not been factored in. They do not look as favourably on DMPs as the banks and could issue bankruptcy proceedings against you.
An IVA may still be an option but it would depend on the total debts inc trade creditors and HMRC and also the valuation of the property and if it is jointly or solely owned. Your estiamated valuation may be generous and it would certainly be worth obtaining a valuation based on a quick sale to see whether or not your guess is right.
Thank you as at present I owe nothing to the HMRC only to the bank in loans and credit cards,.To date I don't have any arrears on anything but and there's always a but..work is at an all time low hence me posting on this very helpful forum. thank you again
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
