thinking bout getting iva

wilsonneedshelp

hi there im thinking bout getting iva as im in debt and have a debt company hassle me for 10000 threatning baliffs so im going to apply for iva me and my mrs have over 60000 of debt got some questions before we apply

1 of my debts is old mortgage with northern rock 30000 neg equity which is loan will that be considered

we rent so how will that effect it

i work in sales and get bonus how does that work

confused76

hi wilson have you taken advice from one of the debt charities? you can speak to the national debtline, cccs or cab for free and they will help you out with your options

good luck

Charco_2

£60k debt and £30k of it with Northern Rock - they'll be awkward! You'll need 75% of the total of your debt to agree to an IVA and Northern Rock have half... Yes it will be covered in the IVA as it is now an unsecured loan.

Renting will not have that much of an effect on you except that if you have no assets you could consider Bankruptcy. However if you still opt for an IVA it just means you will not have an asset to release equty from at a later stage.

Your IVA will require an Income and Expenditure to show how much you earn each month and where it all goes (not including your credit card bills and loans, just household expenses)... from this you should hopefully have a surplus. The Surplus is what you are able to offer your creditors. It SHOULD be based solely on your guaranteed income, your basic wage - but that might not be enough to cover your costs!

Ideally you would offer any surplus from your basic wage and then come to an agreement about what should be done about bonuses (50% for you, 50% towards your IVA), but it will depend on how much you can afford and how regular your bonuses are.