I’ve got 38k of debt and can’t afford to keep on top of the payments.

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phil926
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by phil926 » Sat Feb 03, 2018 4:04 pm
Hi, I’d like some help please, I’ve got 38k of debt and can’t afford to keep on top of the payments. On top of that me and my partner are in the process of a right to buy house, if I entered into an Iva as a joint mortgage applicant will it affect my partner or do I not go on the mortgage do an Iva but will I have trouble in the future getting a joint mortgage again. Thanks again for any help given.
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Foggy
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by Foggy » Sat Feb 03, 2018 4:36 pm
Mortgage wise an IVA will affect the credit rating of any joint applicant and anyone you have any financial connection with like joint accounts. IVA wise you will have to include the house as an asset and attempt to release some equity at the end of the mortgage.

If the IVA is started before the mortgage is dealt with you will be in breach, as you cannot take further credit in an IVA -- and will fail credit checks anyway.

You need to carefully think about timing and all the ramifications. Can your partner afford to get a mortgage on her own ? You will not be on the deeds as a joint owner though.

Mortgages in the future are possible, but not for at least 6 years.
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phil926
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by phil926 » Sat Feb 03, 2018 4:52 pm
Thanks for the reply, yeh my partner should be able to get the mortgage on her own. So should I start this iva ASAP then? Also cause we live in the same house will she need to disassociates herself from me as I’m wondering it may affect her. Or should I wait till she has the mortgage in place before applying for an Iva? Thanks
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kallis3
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by kallis3 » Sat Feb 03, 2018 4:59 pm
Do you have any joint finances at all?
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phil926
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by phil926 » Sat Feb 03, 2018 5:05 pm
kallis3 wrote:
Do you have any joint finances at all?



No just the house we live in but that’s rented atm and in her name even though mine is on the tenancy as living there
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Foggy
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by Foggy » Sat Feb 03, 2018 5:19 pm
As long as you have no joint accounts she should be OK.
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Keith White
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by Keith White » Sat Feb 03, 2018 5:31 pm
I agree with the others - if you have no joint accounts, your debt should not affect your partner. No reason in principle why you shouldn't apply for an IVA while she arranges for a mortgage in her name.
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phil926
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by phil926 » Sat Feb 03, 2018 6:30 pm
Many thanks for your advise, I will look into an Iva straight away. :)
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phil926
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by phil926 » Sat Feb 03, 2018 7:14 pm
Keith White wrote:
I agree with the others - if you have no joint accounts, your debt should not affect your partner. No reason in principle why you shouldn't apply for an IVA while she arranges for a mortgage in her name.



Just thought of something else, I have an Halifax ultimate reward account also a credit card and a loan with them, will an Iva affect my bank account and it’s benifits? Thanks Keith
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Foggy
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by Foggy » Sat Feb 03, 2018 7:38 pm
phil926 wrote:
Keith White wrote:
I agree with the others - if you have no joint accounts, your debt should not affect your partner. No reason in principle why you shouldn't apply for an IVA while she arranges for a mortgage in her name.



Just thought of something else, I have an Halifax ultimate reward account also a credit card and a loan with them, will an Iva affect my bank account and it’s benifits? Thanks Keith


The credit card and any overdraft facility will have to go and you might be required to switch to a basic account, as the creditors might not agree to the account subscription.
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kallis3
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by kallis3 » Sun Feb 04, 2018 8:58 am
As Halifax are creditors, you will need to get a basic bank account - Co-op come recommended you can apply on the phone or in a branch.
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phil926
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by phil926 » Sun Feb 04, 2018 10:25 am
kallis3 wrote:
As Halifax are creditors, you will need to get a basic bank account - Co-op come recommended you can apply on the phone or in a branch.



That’s what I was thinking, but will I still get one even though my credit score is low? Thanks
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Foggy
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by Foggy » Sun Feb 04, 2018 10:38 am
phil926 wrote:
kallis3 wrote:
As Halifax are creditors, you will need to get a basic bank account - Co-op come recommended you can apply on the phone or in a branch.



That’s what I was thinking, but will I still get one even though my credit score is low? Thanks



Co-Op Cashminders are very popular with those of us in an IVA ... I had two such accounts with them, opened at the start of mine, with no problems.
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phil926
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by phil926 » Sun Feb 04, 2018 12:01 pm
Foggy wrote:
phil926 wrote:
kallis3 wrote:
As Halifax are creditors, you will need to get a basic bank account - Co-op come recommended you can apply on the phone or in a branch.



That’s what I was thinking, but will I still get one even though my credit score is low? Thanks



Co-Op Cashminders are very popular with those of us in an IVA ... I had two such accounts with them, opened at the start of mine, with no problems.




Ah right brill thanks for that info. Cheers
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Lisa Thomas
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by Lisa Thomas » Mon Feb 05, 2018 9:49 am
Make sure you consider all insolvency options in case Bankruptcy is better for you.

Here is my ideo on personal insolvency options:

https://youtu.be/h4dozq9aGak

Here is my video on Bankruptcy:

https://youtu.be/mAkQsVSCnqo

and finally one on IVA:

https://youtu.be/mAkQsVSCnqo
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