IVA and house

worriedinstaffs

I own a property that I rent out, there is no mortgage, it is paid for completely. The property is tenanted and gives me an income of £500pcm which I use to pay for the rent at the house I live in.

My business (sole trader) is really struggling and the debts are mounting up, including overdrafts, credit cards and a loan I have it at approximately £25k.

I am starting to miss payments and the charges keep mounting up, I pay money in but it just gets eaten up in fees and charges and I am getting nowhere.

If I were to apply for an IVA on the unsecured debt would they want my house?

I could probably borrow some money off my dad to clear the IVA immediately. The reduced payment would mean I could move forward and earning what I earn I could get by.

Thanks

Matt (worried in Staffs)

RAS

Hi

I hope that no-one would offer you an IVA in this situation as you are not insolvent. Certainly they would take the £25K from the equity in the house and then charge you £6-10K for the Insolvency officer's fees.

So please do not do it.


We really do need to see an Statmetn of Affairs to find out where you could cut back or work round your problesm and you need to talk to teh Business Debt line and to either NDL or CCCS about any personal debt.

worriedinstaffs

Thanks for the prompt response. Would I therefore be better trying to get in touch with my creditors and seeing if they are prepared to help?

RAS

You need to talk to one of the debt charities listed here http://www.moneysavingexpert.com/loans/debt-help-plan#help re your personal debts.

Also speak to business debt line if needed.

if you provide a list of income and expenditure here - keeping the business costs separate - there may be ways of reducing your spends, reducing the costs of your accounts etc.

worriedinstaffs

Many thanks, shall contact them in the morning.

RAS

They are open until 8-9pm is you want to speak to them tonight.

worriedinstaffs

Superb, once again, many thanks.

No point burying my head in the sand.