New debt + moving in with girlfriend

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thedude95

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Post by thedude95 » Tue Feb 18, 2020 1:48 pm
Hi so i've got 37k worth of debt mainly with HSBC and a few hundred with other creditors with most of it being fairly new in november/december. I've been speaking to an IVA specialist and they said because the debts so new theres a chance they wont accept it. Is this true?

Currently i live with my mum and dont pay rent but my girlfriends buying a house in august and i would be moving in and paying her monthly keep as i have a child and will help her with bills etc. If i get into the IVA before this happens and then move to my girlfriends and pay her £500 a month would it fail the IVA because its too much in terms of change of expenditure?

Also would my girlfriend have to disclose her income etc? Or would it be better to say I live with a lodger/friend?

Foggy

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Post by Foggy » Tue Feb 18, 2020 2:35 pm
If HSBC has the bulk of your debt the IVA will depend on them accepting -- it matters not what the others think, unless HSBC decline to vote.

Most of us lived on credit right up to starting the IVA procedure and I doubt a hundred quid here and there would be a deal breaker.

Adding £500 rent to your expenses once the IVA has started will possibly be a deal breaker, however, and you should discuss this with your prospective IP beforehand.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

thedude95

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Post by thedude95 » Tue Feb 18, 2020 4:21 pm
thanks for the reply foggy, the majority of debt is with hsbc and this is new debt within the past 6 months, would that affect their decision in anyway? I've got 2 loans with hsbc one for 11k ( 17k with interest) and one for 5k (top upped my loan from few years back = 15k with interest) that i took out within the past 6 months.

Would it possibly then be wise to start paying my mum rent so its not such a dramatic difference when moving in with my girlfriend so it doesn't fail?

Foggy

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Post by Foggy » Tue Feb 18, 2020 4:38 pm
Paying 'keep' to mum would be an idea, to establish that outgoing, and would be an expected expense anyway. Your loans with HSBC could be a concern, as they are not very IVA friendly as an organisation. They routinely close bank accounts of those in IVAs, even if not a creditor. I do not know, from experience, how they generally vote as a creditor.

As devil's advocate, I am concerned that you feel able to suddenly find £500 per month rent in the coming months, rather than service the current debt. But, of course, everything depends on your complete financial picture.

I would have a word with a few different IVA providers and discuss HSBCs voting history specifically.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

thedude95

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Joined: Tue Feb 18, 2020 1:34 pm

Post by thedude95 » Tue Feb 18, 2020 6:29 pm
Paying mum rent would they ask for proof? As she is on benefits and me sending her money every month would affect this.

Also would they need to see a household income?

Sorry for all the questions youve been a great help!

Foggy

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Post by Foggy » Tue Feb 18, 2020 7:18 pm
They would need proof of rent --- but I am sure ( although you can't be sure of anything these days) that they would accept that an adult child would be paying their way, 'board & lodge', as opposed to 'rent' as such, and that most parents do not do this in a formal fashion with rent books and receipts.

If they accepted the figure you give for board and lodge, this would include most household expenses (or your share of them) so would, probably, not need a full breakdown, as long as the figures were reasonable. This might change when you move in with the g/f as that would be more formal and you would be expected to be paying a fair share of all the household expenses (whereas parents B&L charges are often based on the child's income, rather than the actual costs).

Only your prospective provider can tell you exactly how they will approach this and what they will require.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Lisa Thomas

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Post by Lisa Thomas » Wed Feb 19, 2020 12:43 pm
Can I ask why you feel an IVA is a better option for you than Bankruptcy?

Have you taken advice on your options?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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