Questions about IVAs and The Implications of Them

GunJack

Guys,

Apoogies if these are dumb questions, but I've trawled the DFW board for weeks and have not really been able to find answers to some questions. Any help appreciated.........

1. Does an IVA have to be in one person's name only, or if you're married can it/would it have to be a joint one? (only joint debt is mortgage, all others are individual)

2. If the main breadwinner takes out an IVA what implications does this have for the other partner?

3. What implications are there for the mortgage/home if an IVA is started?

4. From people's experience, what sort of proportion of the debt is required to be paid monthly (I know this is very subjective, it is just to try and gauge an idea based on the total amount owed and hence see if the IVA is an option)

5. Would an IVA have any implications for Incapacity Benefit (for the non-breadwinner)?

There are probably other questions that may fall out of the answers to these, but in the first instance any help with the above would really be appreciated.

OliveOyl_2

Bumpety-bump - you'd slipped to page 3

I have no experience with IVA's sorry, but I'm sure someone wiser will be along.

skibadee

Can't help you much I'm afraid...I'm in the process of setting up an IVA through CCCS, all but two debts are just in my name, I'm taking the IVA outin my name only,but if you want to do a joint one I believe you can.
Debt is approx £57,000......after I&E surplus income is £316 which is what monthly payment will be, I&E took joint incomes as OH and I contribute jointly to household.....but deducted OHs financial commitments ie ., £50 a month to his credit card from surplus.....[before this deduction surplus was £366 a month ]
Sorry I can't help with the property side as we rent.
Incapacity benefit.....wouldn't of thought it would have any implications re the claiming of this but don't know if would be taken into account as far as I&E goes as obviously it is an income.
Have you tried giving one of the debt charities a ring? they would be able to answer any questions and give you advice as to wether or not an IVA would be the best option for you/your partner.

rog2

I agree with skibadee - your questions would be best answered by one of the Debt Counselling Charities such as National Debtline - 0808 808 4000, CCCS - 0800 138 1111 or a Financial Advisor at your local CAB.

IVA's are, in themselves, quite complicated. They are an alternative to bankruptcy and, therefore, are subject to quite rigid guidelines which will depend on your personal circumstances.
Whilst an IVA can often be used as an alternative to bankruptcy, if the debtor has personal assets, such as property, which he wishes to protect, you should be aware that some IVA's, especially if offered by the 'IVA Factories' who 'promise to wipe off up to 90% of all your debt using a little known government legislation', can include a clause that requires you to raise some 'equity' after so many years.
So fraught with risk is the 'IVA route' that you should only consider an IVA through a properly registered Insolvency Practitioner who has been reccomended by one of the debt charities, and, even then, only if an IVA is the option that that charity reccomends for you.

So I reccomend, GJ, that you start the process with one free anonymous phone call.

Good luck.

rog2

you might, also, want to look at Martin Lewis's own guide to IVAs, which you can view, and download, on the following link:

http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

Most of your questions will be answered by 'the boss' himself.

GunJack

Thanks all for the replies, some further digging is obviously required on my part. If anything else crops up out of it, I'll be back to ask..cheers again.

Deep_In_Debt

Do look further into an IVA. They are only suitable for a small percentage of people and there are many companies who make a lot of money out of them. I very nearly went for one, but CCCS advised a DMP which I am due to clear off in less time than an IVA, which a certain company were determined to sell me!