New and worried...

whattodonext

Hello everyone, we are going through a very difficult time at the moment my partner had the sack from work and also has lost our income from his own buisness.
We had always kept up with our payments on time each month but now it seems we are not going to have any money to pay our mortgage or loans.
We have a loan of £14,500 in both our names and also my partner has a buisness loan of £5,500 i also have store cards which amount to £200
I am wondering weather we would qualify for an IVA?
I work 20 hours and my partner is going to claim JSA and also tax credits which will help us out each month but i am realy worried about the loan payments if my partner does get another job i dont think he will get one on as good pay as he was on in his old job which means we wont have enough to pay our loans anyway, Do you think we would qualify for an IVA i have an appt with the CAB next week but im so worried i just dont know where to turn next??

Thank you for any advice very worried mum of 2 x

Charco_2

The short answer is no, i dont think so from the details you have given here. Nor do i believe it would currently be your best option. But don't panic, there are always options... of sorts!

The general guidelines aim for £15k of debt with 3 or more creditors.You do have this between you, (£20k debt and a few creditors) however while as a household you ARE now technically insolvent with your husband out of work (but looking presumably) then this situation is not going to continue indefinitely. You'd only be able to give a more definite picture of your situation when your husband returns to full time employment.

Also, the way the debts are set out £14k joint then youd either BOTH have to enter the IVA (a joint IVA for £10k each type of thing which i'm not sure is possible) or your husband enters the IVA and you would continue to pay the remainder of the debt yourself... This is of no benefit to you!

At a guess, i'm not sure you would have enough surplus income to propose regular contributions to an IVA wanyway - nbot unitl your husband found work.

In the meantime, i would inform you creditors of your current situation and let them know that your repayments to your loans will be stopping for the time being... you will make nominal payments in the meantime of figures you can more reasonably afford. They'll threaten you and say all sorts but you can remind them that you cant get blood from a stone!

fiveyearplan

I would seek help from CAB - make sure you ask for a debt specialist. Do you have any children? Are you entitled to any benefits? Check https://www.entitledto.com to check. There are also government sponsored deals to help you keep your house (I don't know how they work but a few people on here have used them).

Why don't you post up your SOA so we can see where you stand?

http://www.makesenseofcards.com/soacalc.html
When you fill that in, at the bottom is a button to format for MSE, click on that then copy and paste in this thread.

Nothing is as bad as it seems! Hang in there - we've all been in the same position.

ps - you don't seem to have enough income to enter an IVA or a DMP.

whattodonext

Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly income after tax................ 650
Partners monthly income after tax....... 120
Benefits................................ 600
Total monthly income.................... 1370

Mortgage................................ 300
Rent.................................... 115
Council tax............................. 85
Electricity............................. 30
Gas..................................... 30
Water rates........................... 29
Telephone (land line)................... 30
Mobile phone............................ 15
TV Licence.............................. 12
Internet Services....................... 15
Groceries etc. ......................... 320
Petrol/diesel........................... 50
Car Insurance........................... 124
Other child related expenses............ 30
Buildings insurance..................... 15
Contents insurance...................... 12
Life assurance ......................... 17
Other insurance......................... 6
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 20
Total monthly expenses.................. 1225[/b]

Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 200
Other assets............................ 0
Total Assets............................ 200

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 53,000.......(300)......0
Total secured & HP debts...... 53........-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
personal joint loan............£14,500......£280.......0
partners buisness loa..........£5,500.......£96........0
store cards....................£180.......£15.....0


Not sure if i have done this right but i think it makes sense, I know our situation is only for the time being until my partner gets a job but i dont know where to turn next.
My partner did say that he would claim the IVA on his own as it is his fault that we are in this situation, but what would happen to my half of the debt would they just half the £14,000.
i am only 23 and so confused about everthing. I have phoned the banks and they have actually been very understanding but now we are going to get in trouble with missed payments until we can afford it again i just want it to all go away...

Thank you so much for your advice x