Would We/I be eligable for a IVA

kindofagilr

I am just posting quickly from work

Ive worked out how much we owe in debt not including our mortgage and we have 45K in debt all unsecured, I am so ashamed of us getting into this mess

31k ish of it is in OH's name
14k ish is in my name
But all debt is both our debts

We are not married, but are engaged and both names are on mortgage of house

Do they do IVA's for couples or do you have to be married?

If they only do them for single people, do I owe enough for one?

I am hoping to speak to CCCS when I get home from work to see whether they think a DMP or IVA is the best option

We really dont want to go bankrupt as we dont want to lose our house

We arent missing payments yet, but will be from this month

Charco_2

I've even seen an IVA for a mother and son (not common at all obviously but possible... you don't have to have a legally binding status, it's enough that your finances are to some extent tied up in eachother!

For my tuppence worth, a DMP is a sticking plaster: it's adequate if you only need to cover the gap for the short-term (but you wouldn't put a plaster on instead of stitches for example)
Think about the amount of money you owed each month... the interest on £45,000 at a guess could be as much as £8,000 a year, this is £666 a month. If you enter a DMP there is no guarantee that interest or charges would stop so if you're not paying MORE THAN £600 a month then you wont be making a significant dent in your debt. (You might be able to tell that i would have a preference for IVAs)

Speak to CCCS and see what they say. Speak to others too and ask questions and questions and questions! The better you are informed the better equipped you'll be to make your own decision about what is best for you.

I know you've said you haven't missed any payments yet but has that involved any amount of robbing peter to pay paul? (Paying off your credit cards and then using the credit cards again to live on).

kindofagilr

Hi Charco yes it has been a case of robbing peter to pay paul and now the cards are maxed out, I am just about to post my SOA up

kindofagilr

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 750
Partners monthly income after tax....... 1150
Benefits................................ 120
Other income............................ 0
Total monthly income.................... 2020

Monthly Expense Details
Mortgage................................ 618.5
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 30
Gas..................................... 70
Oil..................................... 0
Water rates............................. 34.5
Telephone (land line)................... 15
Mobile phone............................ 50
TV Licence.............................. 25
Satellite/Cable TV...................... 34
Internet Services....................... 10
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 200
Road tax................................ 0
Car Insurance........................... 60
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 40
Other child related expenses............ 5
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 7.5
Contents insurance...................... 7.5
Life assurance ......................... 17
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1434


Assets
Cash.................................... 0
House value (Gross)..................... 113000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 121000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 98000....(618.5)....6.29
Total secured & HP debts...... 98000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Loan...........................23184.....370.......0
Car Loan.......................7740......180.......0
Marks and Spencer .............4800......100.......0
Catalogue......................300.......20........0
Overdraft .....................1200......0.........0
Virgin.........................2600......50........0
ASDA...........................3000......80........0
LLoyds.........................3200......80........0
Total unsecured debts..........46024.....880.......-


Monthly Budget Summary
Total monthly income.................... 2,020
Expenses (including HP & secured debts). 1,434
Available for debt repayments........... 586
Monthly UNsecured debt repayments....... 880
Amount short for making debt repayments. -294

Personal Balance Sheet Summary
Total assets (things you own)........... 121,000
Total HP & Secured debt................. -98,000
Total Unsecured debt.................... -46,024
Net Assets.............................. -23,024

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

FoggyBrain_2

First thought ..... TV licence is high, groceries are low. Petrol might be taken down a bit, but your IP will discuss this. My wife and I have interlocking IVA's, similar figures to yours..... total debt came in at £58k (frightening isn't it!?), out disposable income for two adults and one 4 year old, worked out at £444, which gave a dividend of 33 pence in the pound to our creditors ( after IP fees).

Our figure for groceries is £408, we also put down £20 per month car maintenance (only 1 car) our fuel allowance was agreed at £80. We also had £20 agreed for haircuts and £20 for emergency fund.

Do you pay for car parking and do you have any regular prescriptions ?

Remember, you should be able to live off these amounts, as you will be stuck with them (potentially) for 5 years.

kindofagilr

Ive just looked at bank and TV license has gone down to £12

CCCS just went through the debt remedy with me, they say after all priority bills have been paid we have £218 to pay towards IVA

They gave the following for extras:
£15 emergency fund
£240 food, toiletries
£22 spares/service for car
£10 car breakdown
£85 tobacco (although we are now going to quit)
£6 kids activities
£8 prescriptions
£11 dentists/opticians
£16 hairdressers
£36 clothes
£5 hobbies
£11 pocket money

Which comes to £475 a month and I know we wouldnt spend that much a month on those things, we dont get our hair cut every month for example?

Does that sounds normal?

FoggyBrain_2

Looks better --- CCCS only gave us £250 per month groceries .. but our IP upped that to £406, which the creditors were happy with. Our clothes are lumped into that figure though. Some IP's are happy with smoking, some expect you to go cold turkey !!!! TBH the CCCS figures were on the low side for us, but, after speaking to other IP's we came up with a workable budget. If you try to be too frugal at the start you are heading for a fall --- it is in no-one's interests for an IVA to fail.

CCCS will likely try to talk you into DMP and (I suspect) engineer IVA figures to make IVA's appear less appealing.

If any of your creditors are represented by TiX I would say that they will try to cut back on hobbies, pocket money and activities. They halved our bus fare budget for instance (one car, wife walks .... so were were "up" on that deal anyway!).

As for not having haircuts every month -- these figures are averaged out ... some months you won't spend any on the barnet -- others more. Within reason, anything you save should be kept aside for contingencies, like the washing machine blowing up !!

kindofagilr

CCCS have pointed us towards a IVA as they say if the creditors froze the interest it would still take us nearly 18 years to pay it all back and thats if they froze it

I dont think they are, we owe to LLoyds, Santander, Simply Be, MBNA, Marks And Spencers, Lloyds is the one we owe most too, the big loan, the overdraft and a credit card, so I believe if we went for this, if they say no we are screwed?

FoggyBrain_2

You'll need a 75% yes, so a big creditor can go either way --- my biggest was AA, they said yes, with a couple creditors represented by TiX, they made up 90%, and they said yes. So it didn't matter what the others said. Santander and MBNA tabled amendments which we didn't accept, as, having accepted Tix's £28 payment increase and AA's reduction of IP's fees, we didn't even need them to agree to the proposal as presented, which in the end they did anyway!

kindofagilr

Thank you very much for your help

OH rang his parents and we are ever so grateful in that they are going to pay off our car loan and 3 of the credit cards just leaving us with M&S so this has been a big scary lesson for us and we arent going to get back in that sitatuion again

FoggyBrain_2

Best of luck with it. You are fortunate to have such understanding in-laws (to be ?). Most of us who find ourselves in IVA's take it as a very salutory lesson.

Look after yourselves and especially young Elliot :-)