IVA - maternity & gradually reducing salary

laurasbump

My OH and I are looking at an IVA - we have a combined debt of around £55k. Our current income is £3780 our outgoings are £2555 and minimum repayments are £1450 meaning that we're down -£225 per month, which I'm managing with my last remaining credit card that has space on it. We're very close to the point where we can't go on. Matters have come to a head because I go on maternity leave in October and between then and July 2010 my salary will gradually diminish from £1200 per month to zero, plus we'll have an extra family member and I expect outgoings will increase.
My OH has a gambling problem, which we're managing by not giving him access to funds - I give him £70 per week for his expenses.

My IVA questions are:

- Can I be part of an IVA where my salary isn't consistent?
- Would I be able to be part of a joint IVA if I didn't go back to work and therefore had a nil income after July 2010 - childcare for 2 would be £70 a day which pretty much negates what I'll be bringing home.
- How are expenses managed - OH can spend between £60 and £200 per month on expenses. He already has a company credit card but does need cash too.
- Would I be able to keep DS in nursery for 2 days a week (£280 per month) even though I'm home with a newborn?
- Will we be asked how we got into this debt? If so, how will the IVA practitioner react to OH's gambling problem?
- Our creditors are (in order of largest debt) - Barclays, Halifax, Egg, M&S, Sky, A&L, HSBC. Anyone have any bad experiences with any of these lenders in relation to entering an IVA/DMP?

I am looking at the possibility of childminding while I have the 2 at home, which I reckon will be about 3 years.

Thanks,

Laura

danielanthony

You need to be able to guarantee at least 25p in the £ over 5 years for an IVA to be accepted by creditors. If you cant do this for whatever reason, than an IVA wont be for you. Have you considered going BR? From what I've seen on here that may be your best option as it can be finished in a year and you dont need to worry about your drop in income.

BTW, I had an IVA which finished last year, it was a financial struggle despite me having a steady job which is why I dont think it will be for you with your continued financial instability.