IVA Advice please

Olivia_Jones

My husband and i have around £55600 of unsecured debt,we have £370 per month to pay towards our debts,what is the liklihood of us being accepted for an IVA?
We do not want to do bankruptcy as we own our own house.
Also is it true that after 6 years of starting an IVA,your credit rating goes back to if you were 18yrs old again?Thanks Liv x

foulplay13

You need atleast £200 surplus to qualify for an IVA.

Try and find a practioner that won't charge you any set up fees.

The length of your IVA is subject to the demands of the creditors (My wife & I's is 8 ruddy years).

Ours took 4 attempts and one of those involved, changing to a different practioner..

(Because the first didn't try hard enough)

RAS

Olicvia

You need to talk to one of the debt charities listed here http://www.moneysavingexpert.com/loa...help-plan#help

Firstly, if yo have no equity then you might be able to go bankrupt and still live in the house.

Secondly, if there is equity in the house, and you do an IVA, you may have to release the equity in year 4 or the IVA.

So please talk to the debt charity about your specific circumstances.

rog2

Olivia_Jones wrote: »

My husband and i have around £55600 of unsecured debt,we have £370 per month to pay towards our debts,what is the liklihood of us being accepted for an IVA?
We do not want to do bankruptcy as we own our own house.

Hi Olivia - I would like to endorse the advice given by RAS.

It looks, to me, that you may be unsure as to the most appropriate way of dealing with your 'debt problem' and that you are in need of some independent professional advice, so, please talk with one of the Debt Counselling Charities that RAS has posted a link to, in her post.

They are charities and their advice will be professional unbiased and free.

Please be wary of any advice that you may be given by any 'for profit' Debt Management Company. IVAs earn very handsome fees for the Insolvency Practitioner, whereas 'Bankruptcy' doesn't, so often debtors can be talked into entering an IVA when it may not be the most appropriate solution for them.

I do not say that ALL private Debt Management Companies are going to give you misleading information, or talk you into an IVA which could 'fail' leading, almost inevitably, to Bankruptcy, but the current economic climate is making this an attractive marketplace to some 'less than scrupulous' chancers who see your problems as a way to line their pockets.

It may well be that, after discussing your situation with one of the Debt Charities, an IVA is the most appropriate course of action for you - in which case, the charity concerned will be only too happy to put you in touch with a reputable Insolvency Practitioner who will act in the best interests not only of your creditors, but yourselves.

In the meantime why not read Martin Lewis's guide to IVAs, by clicking on the following link:

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