Please help with IVA advice

GlossyBird_2

Hello
An IVA is something I have very recently considered without really knowing what it means. I telephoned the first number that comes up on Google when you type in IVA, I thought they were connected to Citizens Advice but they were quick to point out there is no connection. Nevertheless I gave them my income & outgoings. I have now read the info on this site, it was very helpful. think I should contact CAB direct for impartial advice, is that correct?
There are 6 in our household but my three older children are over 18.

Our joint income is £2719

Outgoings (as listed by the Co I telephoned)

Mortgage: 1335
Council tax: 126
Gas: 40
Electric: 80
Telephone & TV: 50
Mobiles: 35
Pet Ins 26.51
Water rates: 34
Household shopping: 480
Personal Hygiene: 15
Clothing: 45
I think thats everything but the total was £2468

Our mortgage is 1335 until next May when it will drop to 1235, my husband has an eye op and was off work so we negotiated missing 1 mths mortgage & spreading it over 11 mths.

My husband is a self employed taxi driver, his car is on HP and we need to keep that or he cannot work, I think that is possible according to the info on this site.

I am a bit confused as the advisor said the insuance, fuel & maintenance goes through the business?? Not really... we still pay it out of our income, the two are not separate, but he did not want those figures.

Our debts are

Lloyd TSB loan: 19,000 - OH
Lloyds TSB CC: 4100 - Mine
Lloyds TSB CC: 7000 - OH
Capital One CC: 220 - Mine
Asda CC: 5000 - OH
Asa CC: 2900 - Mine
Marshall W catalogue: 1700 - OH
Littlewoods: 300 - Mine
Overdraft: 400 - Joint names
£41,000 in total.
We are up to date on all min payments except for 1 Lloyds CC, due yesterday (Lloyds TSB will whip that out of account at the worst poss time no doubt, they have before)
and also 1 Asda card, due 2 weeks ago.

My questions are ....
Do you think an IVA is possible or do we need to reduce our outgoings somehow to give more disposable income?

As the bulk of our debt is owed to Lloyds if they say no is that it,we cannot have an IVA?

Can we keep our house? Worth £140,000 Outstanding Mortgage £115, 000

Am I right in thinking we can keep the car if we can afford to pay the HP?

I am scared to death I am entering into something I do not know enough about, as well as being so mad to have got ourselves into this situation.

I would really appreciate your thoughts and advice


Thank you

peachyprice

Sorry, I can't help with any info about an IVA but if you're not putting the car HP & running costs in your SoA you need to reduce OH's income by this amount otherwise your figure will not work out.

Nargleblast

Housewise, with an IVA you keep your house but are expected to release some of the equity in it about four and a half years down the line, to wind up the IVA. Your IVA company should explain all that to you.

Creditors owning 75% of the total debt have to vote in favour for an IVA to proceed. If Lloyds vote against, then the IVA company will try and negotiate with them to persuade them to accept.

You cannot pick and choose what debts to include in your IVA proposal, everything has to be included. Not sure what that means in terms of HP agreements but I am sure your IVA company will clarify.

You might want to try different companies to see what their terms are.

thecableguy12

GlossyBird wrote: »

Hello
An IVA is something I have very recently considered without really knowing what it means. I telephoned the first number that comes up on Google when you type in IVA, I thought they were connected to Citizens Advice but they were quick to point out there is no connection. Nevertheless I gave them my income & outgoings. I have now read the info on this site, it was very helpful. think I should contact CAB direct for impartial advice, is that correct?
There are 6 in our household but my three older children are over 18.

Our joint income is £2719

Outgoings (as listed by the Co I telephoned)

Mortgage: 1335
Council tax: 126
Gas: 40
Electric: 80
Telephone & TV: 50
Mobiles: 35
Pet Ins 26.51
Water rates: 34
Household shopping: 480
Personal Hygiene: 15
Clothing: 45
I think thats everything but the total was £2468

Our mortgage is 1335 until next May when it will drop to 1235, my husband has an eye op and was off work so we negotiated missing 1 mths mortgage & spreading it over 11 mths.

My husband is a self employed taxi driver, his car is on HP and we need to keep that or he cannot work, I think that is possible according to the info on this site.

I am a bit confused as the advisor said the insuance, fuel & maintenance goes through the business?? Not really... we still pay it out of our income, the two are not separate, but he did not want those figures.

Our debts are

Lloyd TSB loan: 19,000
Lloyds TSB CC: 4100
Lloyds TSB CC: 7000
Capital One CC: 220
2 x Asda CC: 7900
Marshall W catalogue: 1700
Littlewoods: 300
Overdraft: 400
£41,000 in total.
We are up to date on all min payments except for 1 Lloyds CC, due yesterday (Lloyds TSB will whip that out of account at the worst poss time no doubt, they have before)
and also 1 Asda card, due 2 weeks ago.

My questions are ....
Do you think an IVA is possible or do we need to reduce our outgoings somehow to give more disposable income?

As the bulk of our debt is owed to Lloyds if they say no is that it,we cannot have an IVA?

Can we keep our house? Worth £140,000 Outstanding Mortgage £115, 000

Am I right in thinking we can keep the car if we can afford to pay the HP?

I am scared to death I am entering into something I do not know enough about, as well as being so mad to have got ourselves into this situation.

I would really appreciate your thoughts and advice


Thank you

are all these debts joint or single?

Dikko

My wife and I are in a similar position but with bigger debts. There is light at the ned of the tunnnel but you need to get independant advice from consumers direct which is listed on this website. Look for the iva explained by Martin and everything you need to know is drafted on that page. If you go into an iva it is a legally binding contract and you keep your house. They may aks you to remortgage in year 4 to see if they can get some of the equity in your house, but if you cant remortgage then the iva is extended a further year. Be careful who arranges this for you as those that are charging a fee are mortgage brokers and will get you a mortgage but at very high rates so its important you get non fee paying advice which Martin advises on his iva page.

I hope this helps

Dikko:j

GlossyBird_2

Hi and thank you for your replies.

I read the IVA info on this site, I think we will be ok with the car.

If you’ve a car but can show that you need it for work, you are unlikely to have to sell
it. Yet if you’re in the middle of paying the car off under a hire purchase deal, you
can’t include this debt in the IVA, as the finance company could just repossess the car.
Normally you’ll be allowed to keep making monthly payments towards the car (assuming
you can afford them), yet when the finance deal ends you’ll need to pay the extra money
into the IVA instead.

I have added where each debt is mine or my husbands, the only joint debt is the overdraft, can a joint IVA be done if the debts are not in joint names?

I understand about having the house valued in year 4 but with the possible remortgage in the 4th year, how would we be able to pay for that given that our finances have been worked out so that any remainder is paying the IVA?

Thank you for your help

loopylass81

im on yr 3 of a 6 yr iva a word of advise check everything you have before agreeing to anything I wish I had no as it would have saved loads of problems down the line.

I think the car should be ok and however I am unsure why they will not accept the details regarding the fuel etc as if they are not on a business a.c then they need to be included otherwise you will not have accounted for them each month.

Even though I have had problems an IVA was the best option however I did find a few companies where not happy the majority accepted my terms.

If you are going to miss a payment a suggestion would be to open a basic bank account in another bank which you do not owe anything to and move the dd you need i.e telephone, mortgage etc to that account so they cant take it out before u pay the bills.

hth and good luck