IVA - Looks like the solution...

transwarp7

Hi to All

As a result of several spells out of work after years of stability over the past 8 years then looking after an elderly family member (now sadly passed away) requiring my wife to quit work (£14K per year) 5 years ago (unable to return to work due to illness herself), the accumulated debts that I have been struggling to deal now look set to be dealt with via an IVA.

The only other income that has helped only keep our heads above water is a side-line run in my spare time and at weekends; it is only by transferring some of the small turnover of this each month to keep our bank overdraft from being exceeded (approx £800 each month) and thus just keeps the proverbial head above water.

My current job for the past 5 years is with a company in a sector that has not really been affected by the economic downturn and has strong medium to long term prospects with the company enjoying tremendous growth at home and abroad so this is as steady as a rock to work with as you can get currently with much future scope for my role. I am frequently abroad on business each month which has tended to play havoc with my personal and family routine trying to juggle everything most of all the family finances. The steady monthly salary would prove to be a good foundation to work from if I apply to take out an IVA (me thinks...)

I would be extremely grateful for the forum members to cast their experiences eyes at my SOA below which I have just put together to show the size of my problem.

It looks to me that I will need to arrange an IVA to deal with this tremendous burden.

My thanks for any and all advice, criticism, questions et al...


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2454.32
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2454.32

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 457.4
Management charge (leasehold property).. 0
Council tax............................. 129
Electricity............................. 51.5
Gas..................................... 51.5
Oil..................................... 0
Water rates............................. 64.94
Telephone (land line)................... 30
Mobile phone............................ 40
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 560
Clothing................................ 50
Petrol/diesel........................... 25
Road tax................................ 10.42
Car Insurance........................... 31.5
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 9.67
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 17
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Lloyds Gold Account Monthly Charge...... 12
Monthly transfer to spouse bank account. 400
Total monthly expenses.................. 1972.05


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Gold Mast ..........4977.88...111.......0
Lloyds TSB Duo.................11475.7...229.5.....0
Capital One Visa...............2399.05...71.97.....0
Overdraft......................4000......39.07.....0
MBNA Loan......................19590.3...455.5.....0
Halifax One....................4073.81...40.73.....0
Barclaycard Visa...............4472.95...100.6.....0
Egg............................2693.8....85.7......0
Marbles........................873.4.....21.83.....0
MBNA ..........................4781.3....128.......0
AA Visa........................7612.94...122.7.....0
Total unsecured debts..........66951.13..1406.6....-


Monthly Budget Summary
Total monthly income.................... 2,454.32
Expenses (including HP & secured debts). 1,972.05
Available for debt repayments........... 482.27
Monthly UNsecured debt repayments....... 1,406.6
Amount short for making debt repayments. -924.33

Personal Balance Sheet Summary
Total assets (things you own)........... 200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -66,951.13
Net Assets.............................. -66,751.13

debtinfo

Have you looked at all your options, DMP's, IVA's and bankruptcy and do you understand how they work and the pro's and con's of each one

transwarp7

Hi Debtinfo

Yes, thanks. I've read all the info on all types on the MoneySavingExpert pages plus the guides on sites such as National Debtline and am familiar with the pros and cons of each.

I really want to try and avoid bankruptcy as my job is going well with year-on-year double-digit growth in the international business I manage and am also extending and developing and will continue to see improvements in earning in the years to come plus there is a possible promotion to director level which will be closed to me if bankruptcy is the course chosen.

Because of the size of the debt and in view of my stable job with a decent salary after tax (plus a fully expensed company car) I think the IVA route looks the most appropriate way to go rather than a DMP.

transwarp7

Update

I've spoken to someone helpful over the telephone at our local CAB; they are sending an information pack and then I'll be making an appointment to sit down with someone for at least an hour and a half to discuss a possible best solution. I'm also taking some independent financial advice (non-profit, not anyone with any vested interest) to try and get as rounded a picture of options and things to be aware of so the right decision is made.

crusty_toenail

Well you have taken the first step and seem to have your head screwed on, so enjoy your journey to financial freedom

transwarp7

Some time ago for practical reasons (ie when I'm away on business and for emergencies) I added my wife as a second user to all my credit cards and a few years further back made my current account with LLoyds a joint account.

I have not made an appointment to see an adviser at the local CAB as I have only just received their information pack but before I do to protect my spouses position in all of this that I apply to each credit card company to remove her as a user and also revert my current account to being in just my name.

Has anyone had any problems doing this? It certainly seem to be the right thing to do at this stage of the ball game.

transwarp7

Nothing decided yet but to protect my other half in this we just went into our bank to change our joint account (what was originally my personal account but was changed to a joint account several years back to make shopping easier for my other half) back into an account in my name only to be told it could not be done until the overdraft was paid up and the account is in credit.

My wife has not worked for 6 years and makes no financial contribution to this account whatsoever so I was astounded to hear this condition.

The debts I'm seeking to manage are my responsibility (credit cards/loans are all in my name) so I was not expecting this.

Has anyone else experienced the same?

Charco_2

Yeah, the fact that the account is joint gives your bank extra security on the outstanding debt... If you can't pay it, your wife has to!

Nargleblast

transwarp7 wrote: »

Hi to All

As a result of several spells out of work after years of stability over the past 8 years then looking after an elderly family member (now sadly passed away) requiring my wife to quit work (£14K per year) 5 years ago (unable to return to work due to illness herself), the accumulated debts that I have been struggling to deal now look set to be dealt with via an IVA.

The only other income that has helped only keep our heads above water is a side-line run in my spare time and at weekends; it is only by transferring some of the small turnover of this each month to keep our bank overdraft from being exceeded (approx £800 each month) and thus just keeps the proverbial head above water.

My current job for the past 5 years is with a company in a sector that has not really been affected by the economic downturn and has strong medium to long term prospects with the company enjoying tremendous growth at home and abroad so this is as steady as a rock to work with as you can get currently with much future scope for my role. I am frequently abroad on business each month which has tended to play havoc with my personal and family routine trying to juggle everything most of all the family finances. The steady monthly salary would prove to be a good foundation to work from if I apply to take out an IVA (me thinks...)

I would be extremely grateful for the forum members to cast their experiences eyes at my SOA below which I have just put together to show the size of my problem.

It looks to me that I will need to arrange an IVA to deal with this tremendous burden.

My thanks for any and all advice, criticism, questions et al...


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2454.32
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2454.32

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 457.4
Management charge (leasehold property).. 0
Council tax............................. 129
Electricity............................. 51.5 Have you looked at switching suppliers?
Gas..................................... 51.5
Oil..................................... 0
Water rates............................. 64.94 is this monthly? seems a lot
Telephone (land line)................... 30
Mobile phone............................ 40 try and reduce
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 560 this is a lot for 2 people - this can be cut by at least £100
Clothing................................ 50 cut this out for a few months
Petrol/diesel........................... 25
Road tax................................ 10.42
Car Insurance........................... 31.5
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 9.67
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 17
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Lloyds Gold Account Monthly Charge...... 12
Monthly transfer to spouse bank account. 400
Total monthly expenses.................. 1972.05


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds TSB Gold Mast ..........4977.88...111.......0
Lloyds TSB Duo.................11475.7...229.5.....0
Capital One Visa...............2399.05...71.97.....0
Overdraft......................4000......39.07.....0
MBNA Loan......................19590.3...455.5.....0
Halifax One....................4073.81...40.73.....0
Barclaycard Visa...............4472.95...100.6.....0
Egg............................2693.8....85.7......0
Marbles........................873.4.....21.83.....0
MBNA ..........................4781.3....128.......0
AA Visa........................7612.94...122.7.....0
Total unsecured debts..........66951.13..1406.6....-


Monthly Budget Summary
Total monthly income.................... 2,454.32
Expenses (including HP & secured debts). 1,972.05
Available for debt repayments........... 482.27
Monthly UNsecured debt repayments....... 1,406.6
Amount short for making debt repayments. -924.33

Personal Balance Sheet Summary
Total assets (things you own)........... 200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -66,951.13
Net Assets.............................. -66,751.13

Have just looked at your SOA and given some suggestions.

Nargleblast

You may have to consider going into a new bank (i.e. one where you have no credit cards or loans) and opening new separate current accounts for you and your wife, then the existing account becomes part of your overall debt.