will an iva work

bigsteveo

Ok so here goes,

I have about 24500 quids worth if debt and im struggling big time to pay the min payment each month.
Most of my debt is on credit cards (8) and a finance co.
Ive been onto cccs about this and when i went through my income and out goings i had 145 quid left over.
I also have a couple of months mortgage arrers as well.
I dont know how i got to this point i never seen it coming until i lost my overtime.
All help will be greatly welcomed.

Cheers steveo

Deep_In_Debt

Hi

Can't really help other than to say that I don't think that your mortgage arrears will be included in an IVA or a dmp as IVA's I believe cover unsecured debts only.

Your priority would be to pay off as much as you can towards your mortgage arrears and offer token payments to your unsecured creditors - £1.00, £5.00 pm whatever you can afford for the time being.

bigsteveo

Yeah sorry i realise that the mort arrears wont be included but i was just wondering about the other

memberme

My advice would be to call cleardebt. They are a Manchester /Chester based business and were far more professional and understanding at dealing with my issues. They are run by David Mund the uk's baest known IVA specialist. Believe me your debts are small compared to some. An IVA will sort out your problems regarding your cards and finance. Whilst they are sorting it (4 to 8 weeks) you'll be able to save all the funds you would have sent to the finance and cards and use that to get back online to some degree with your mortgage. Talk to them...it's the first call that is the hardest and most worthwhile.

peachyprice

Do you have any equity in your property that you need to protect?
How much is your mortgage, your arrears and your house worth?

bigsteveo

My mortgage is about 90000, and the houses were i live have went from 150000 to 95000 or there abouts, so i probably dont have any equity.
my head is soooo pickled about thisim really frustrated by the situation

Radiantsoul

I am not sure an IVA is a great idea as you will probably not have enough surplus income after paying your secured debts to make it worthwhile.
What did cccs recommend?

Charco_2

Radiantsoul wrote: »

I am not sure an IVA is a great idea as you will probably not have enough surplus income after paying your secured debts to make it worthwhile.
What did cccs recommend?

That doesn't make sense!

It will do no harm to propose an IVA and if the creditors accept it then he has enough surplus income!

It certainly seems like a better idea than paying £145 into a DMP for fourteen years (and that would only work if interest and charges were completely frozen!)

The alternative is bankruptcy (as I am quite sure a solution in insolvency is the better way to go), it depends on the situation with his house. How much equity is there exactly? Is it all big Steveo's? Is there a Mrs Steveo?

bigsteveo

thanks for all the replys,

yes there is a mrs steveo and her name is on one of the credit cards and also the house. i did wonder if i put the house in her name only could bankrupcey be an option, although i dont really want to go down that road,

i really dont really have any equity in my house since the credit crunch kicked in.

my income will fluctuate because i do still get a little overtime but not on the scale that i did

im so confused by all of this my head is going all roads and im at the end of my tether with all the debt

Walter_J

If you don't have any equity in the house then bankruptcy looks a much better option than an IVA. Your house should be safe.

I would consider stopping paying all unsecured debts and concentrate on clearing the mortgage arrears and putting the bankruptcy fees aside for you and your wife. After Christmas you could go bankrupt. Even if you get a IPO it only lasts for 3 years against 5 for an IVA, and the monthly amount will almost certainly be lower.

bigsteveo

please excuse my ignorance but what is an ipo and how much does it cost to go bankrupt???

thanks again

the other thing is do you have to pay anything back i mean how does the whole bankrupcy thing work i know i havnt the worst debts but i havnt gotta clue about any of this