IVA with Non contract job?

adrian75

Hi
Main question is whether it is possible to do an IVA while working as a supply teacher without a fixed monthly income or contract. In a lot of unsecured debt - £70k - from previous years supply teaching disposable income works out +£400 a month. Currently living with girlfriend who owns the house and I pay rent. Since opening my eyes to debt situation which basically arose from a gambling problem and health issues and finding credit very easy to get from lates 90's to around 2005 I initially got in touch with a debt company called spectrum which was an error as they charged over £2k to fail in setting up an IVA in 2006 and then paid into a DMP with them for around 12 months before contacting CCCS who organised a DMP while i was on a 1 year teaching contract then advised me that they couldnt continue with it when my work went back to working for teaching agencies on a supply basis. While looking for full time teaching work I would be very surprised if my income from supply went below £1250 a month after tax but it could in theory dry up if no full time staff are ill etc. Paying off creditors directly per month currently which is a headache dealing with around 8 creditors ( debt companies and credit cards) - just had to cancel a bunch of direct debits with no income till new term starts. Main stress is fear of debt collectors calling at the house which has happened once over a year ago and caused a lot of hassle with my girlfriend and I would think may be game over for me and her if it happened again - she is aware of my debt problems but not the amount which im sure would shock her! Paying off around £400 a month is clearly going to take over 10 years hence my query about trying an IVA again with a predicted income based on previous supply years. Have considered bankruptcy but concerned about the stigma/future issues and impact on partner and family.

Any advice appreciated. Thanks

Nick700

It is possible to do an IVA without having a fixed monthly income - for example, the IVA could contain a clause stating that to comply, you simply have to pay in a certain amount every year, without having to pay a fixed monthly amount. This is ideal for those people who have seasonal fluctuations in their income.

During a IVA, creditors will not be able to send debt collectors to visit you or take any legal action, which should help your stress levels!

You could consider bankruptcy, however if you have been living with your girlfriend for a number of years and have contribute to a deposit, home improvements, or made payments to the mortgage, then in bankruptcy, the trustee(the person who administers the bankruptcy) would consider whether you have an interest in your girlfriend's property even though your name is not on the deeds. If you are considered to have an interest, then the trustee on behalf of the creditors could ask for money to be paid into the bankruptcy for the value of what the trustee considers your interest to be in the property.

By the sounds of it a DMP will take a long time for your to pay your debts off, but if you do decide on an IVA, make sure the company you choose charges no up-front fees - so you will not pay anything until it is all approved by your creditors.

Hope this helps.

Nick

adrian75

cheers....will have to look into the IVA option again as the time to pay off debts by a DMP is a tough one to take. Been living with girlfriend for 2 years and she is very anti bankruptcy due to the embarrassment of name in the paper etc