What do you think are our chances of being accepted for an IVA ?

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Carole555
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by Carole555 » Wed Nov 08, 2017 12:55 am
My husband and myself are both 59. We have between us about £120k unsecured debt. £39k in his name to hmrc. We make no payment on just over £60k cc debt atm. We have about £100k equity on house but have an interest only mortgage with tmb of £900k with about £2k arrears. There is no way we can pay off this debt in 5 or 6 years. We can probably afford £300 per month at most. What do you think the chance of getting accepted for an iva
Things could very well get better and we coukd afford more in future
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Foggy
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by Foggy » Wed Nov 08, 2017 7:52 am
It is possible. HMRC might be a sticking point, considering the equity potentially available. I would suggest a chat with a couple of firms to consider the full picture.
Carole555
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by Carole555 » Wed Nov 08, 2017 8:39 am
Thanks. Currently they accept 150 per month. Have done for about 5 years. But if they see my husband applying for IVA do you think it might prompt them into making him bankrupt? And opposing an iva?
If he is made bankrupt can that force a sale of our jointly owned/mortgaged house?
Youngest child is 18 at uni.
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Foggy
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by Foggy » Wed Nov 08, 2017 9:36 am
Carole555 wrote:
Thanks. Currently they accept 150 per month. Have done for about 5 years. But if they see my husband applying for IVA do you think it might prompt them into making him bankrupt? And opposing an iva?
If he is made bankrupt can that force a sale of our jointly owned/mortgaged house?
Youngest child is 18 at uni.



Creditor initiated BR is an expensive business for the creditors -- the fees are so much higher, so they would expect a better return in the long run from other methods of repayment, depending on how the assets and potential payments from the BR stack up.

If the debt is from self employment, and you are still self employed, make sure you speak to a firm well versed in S.E and HMRC as the issues are different to the run-of-the-mill PAYE scenario.
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Lisa Thomas
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by Lisa Thomas » Wed Nov 08, 2017 10:40 am
The difficulty here is going to be the high level of equity.

I suspect HMRC will insist on a lump sum type payment to add to the contributions to even consider it as their alternative is to make your husband bankrupt and the house will be repossessed and sold.

It really will depend on what the figures would like like when compared to Bankruptcy and all the costs involved.

I'd be happy to chat to you in more detail.
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