Possible IVA for me - partner buying 'new' car???

sillymee

Hi,

I run a small business and have been struggling due to debts run up a couple of years ago but managing to keep my head (just) above water. With the credit crunch and having a baby due in June I'm seriously considering IVA/Bankrupcy but I don't want my partner, who has never had any credit problems to be affected. At the moment my car (worth less than £1K) needs some work doing on it and with a baby on the way is not really suitable. Can he buy a car on finance (worth £3-4,000), as I enter into IVA/Bankrupcy?

As my income is very sporadic I've based figures on my maternity allowance which will be £500 per month, I should be able to generate this as income by working part time after I finish maternity leave.

We live in my grandma's 'granny flat' and are supposed to pay £300 per per month (although I haven't been doing...). My partner owns a house, in his name only, which is rented out and the income is exactly the same as what I should be paying my Grandma. If the house was not rented out, she would allow us a payment break.


Income
Partner Wage 1144.95
Rent 300
Maternity Benefit 500 (revenue from working after maternity leave)
Child Benefit 85
Tax Credit 185?

TOTAL 2222.95

Outgoings
Mortgage 566
Supermarket 400
Rent 300
Council Tax 132
TV 11
Sky 17.5
Electric 60
Gas 50
Phone 25
Pets 30
House Insurance 30
Car Insurance 30
Petrol 120
Car Maint/tax 50
Car Loan 100 (for 3 years)

TOTAL 1916.50

Surplus £316.45

My total debts currently stand at just under £65,000 - all unsecured cc & loans.

My boyfriend is happy to pay for most of the bills and leave me with the surplus (despite it really being 'his') to enter into an IVA. There is a possibility I could earn more, particulalary in the long term, although I think £500 is realistic, not knowing how good baby will be... Whilst on maternity leave there should be some additioanal income generated from work I have already done, but this will be (on average) no more than £100 per month.

I've be interested to know, based on the above, how much I might be expected to pay wether taking IVA/Bankrupcy option. From the enquiries I have already made with Business Debtline and Grant Thornton I belive it would be between £3-400 per month for an IVA over 5 years?

Any ideas/suggestions gratefully received.

RAS

Speak to one of the debt charities, or preferably two or three http://www.moneysavingexpert.com/loans/debt-help-plan#help

In your situation, I struggle to see how an IVA would be suitable. You have no equity to protect, your income situation is variable and you certainly cannot guarantee that your creditors will accept such a small percentage.

Start by gettign yourself a new basic bank account and talk to the debt charities. if you have ANY joint accounts with BF, get you name taken off them.

sillymee

Thank you for your response RAS. My income is based on worst case scenario, at the moment I earn on average £1,000 per month after business expenses. I hope this will actually go up, however I just want to be totally realistic. I have spoken to Business Debtline, who can't help me becuase I'm pregnant, although they did seem to belive IVA was an option if I went directly with one of the companies (Grant Thornton) they use. Obviously I can't guarantee an IVA would be sucessful at such a low amount and I undestand my payments would be increased if (or, hopefully, when) my income increases. I am also contemplating bankrupcy too.

I would be really grateful if someone could give some advice about the car (although it may not be an option if OH gets turned down for credit, despite his perfect credit history). It almost seems 'wrong' for us to buy a new car when I'm struggling so much, but none of it is his fault and I don't personally see why he should be penalised for it... but on the other hand I wouldn't like to apply for an IVA and get turned down becuase he has just taken a car loan.

Thanks for taking the time to read

RAS

if yoiu follow the link in my previous message, there are loads of advice contacts that are free.

And i would recommend that you only do an IVA if CCCS or NDl suggest it is the best option.