Hi,
I am considering an IVA because I do not have any disposable income each month due to out of control debts and in fact have a shortfall every month, I have a partner and two dependents and I am in a bad situation right now but the most important thing is to keep my house!
I share my home with my partner, it is shared ownership home so between us we only own 40% of the property(joint mortgage of £50k), not much equity, probably about £20k between us which is nowhere near enough to pay off my debt!
I also work in a company that is regulated by financial services and do annual checks on employees and an IVA would not be acceptable to them so if I am going down this route then I need to find an alternative job first before applying for an IVA
My questions are:
1. do you have to be in a job a certain amount of time to accepted for an IVA?
2. My partner took out a loan and credit card in his name for me, I pay him the monthly amounts for these every month and need to continue to do so. Will this be accepted as part of my expenses?? He no way wants to do an IVA and I have no way of paying him this debt back other than monthly as I do now?
1. do you have to be in a job a certain amount of time to accepted for an IVA?
No, as long as you are fairly sure that the job is stable.
2. My partner took out a loan and credit card in his name for me, I pay him the monthly amounts for these every month and need to continue to do so. Will this be accepted as part of my expenses?? He no way wants to do an IVA and I have no way of paying him this debt back other than monthly as I do now?
You would probably not be allowed to pay him back from agreed allowances and to include "your share" of the debt would make him a creditor and only be entitled to the same dividend as the others.
How much debt are we looking at ? Possibly a DMP could be a way forward, at least for now, until you can get sorted a bit.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy wrote:1. do you have to be in a job a certain amount of time to accepted for an IVA?
No, as long as you are fairly sure that the job is stable.
2. My partner took out a loan and credit card in his name for me, I pay him the monthly amounts for these every month and need to continue to do so. Will this be accepted as part of my expenses?? He no way wants to do an IVA and I have no way of paying him this debt back other than monthly as I do now?
You would probably not be allowed to pay him back from agreed allowances and to include "your share" of the debt would make him a creditor and only be entitled to the same dividend as the others.
How much debt are we looking at ? Possibly a DMP could be a way forward, at least for now, until you can get sorted a bit.
Thanks for your comments, my understanding was that a DMP wasn't legally binding and therefore creditors could still take action against my home etc. The biggest thing I want to protect is my house, not for the value but for my children!
You are correct in that a DMP isn't legally binding, but it would give you more flexability over paying your partner and, possibly, be acceptable to your current employer.
Although these things are never certain --- with £20 k equity (only ten of which is yours) --- if creditors went for bankruptcy, they are unlikely to see a penny of it at that level, so it wouldn't be their first choice !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Debtfreeplan wrote:
My questions are:
1. do you have to be in a job a certain amount of time to accepted for an IVA?
No
2. My partner took out a loan and credit card in his name for me, I pay him the monthly amounts for these every month and need to continue to do so. Will this be accepted as part of my expenses??
No - he will be an unsecured creditor in your IVA alongside all your other creditors - you cannot make preferential payments to him.
He no way wants to do an IVA and I have no way of paying him this debt back other than monthly as I do now?
