Does life end with an IVA?

jon-jo

Hello;

(Maybe I'm being a little dramatic with the subject heading)

I am a director of a small company, I own 15% and its been running for 6 years. Things have been hand to mouth since the beginning. There is always the prospect of success just around the corner, but it has been a hard slog. At last valuation it was worth 500K but never paid dividends.

I used credit cards in the early years to subsidise my very low wage, which has now built up to £40k.

I am currently earning £45k.

I have a fiance, 2 children under 3, living in rented accommodation, rent is £1200. We live in London and this is the going rate for a 2 bedroom property. (We are keen to escape london for this reason). My partner has no debt and also earns about £45k, but is currently on maternity, and only gets £400 / month.

I am paying about £1000 a month in repayments, but recently have found it difficult to get low interest deals on CCs and so interest is increasing.

I've finally reached the stage where can not take any more and need to accept the company is not going to deliver the rewards it had originally promised, but will unlikely be able to get a better paid job.

I am considering an IVA, and I am starting to look into it. I wonder though if it will affect my ability to buy a house, since my fiance is keen to provide a secure home for our children, and I am keen to stop paying rent but investing in a home as well.

We're both professionals and can earn decent wages, but the current repayments are crippling. I am sure I can pay off the debt given time and a lower interest rate.

Is the IVA right for me?

Thanks in advance for help

JJ

CLAPTON

an IVA is in general suitable for some-one with assetts to protect
what assetts do you have?
why not consider bankruptcy

I don't understand what you mean you earn 45k or that your partner used to earn 45k and yet you haven't been able to repay or at least repay the debt but that's a different matter

jon-jo

I have np assets other than the shares in my company, which is a going concern. The shares though are hard to sell since we have not yet made a profit.

CLAPTON

The is insufficient information to make anything other than general statements (like IVA suit some people with assets but steady incomes over the next 5 years)

so post up an SOA and explain things like the company makes no money but your income is 45k

FoggyBrain_2

For mortgage purposes, your credit rating will be shot for 6 years from the date of BR or IVA. After that you can have a clean sheet --- however, most mortgage lenders will ask the question "Have you ever been made bankrupt or enetered into an arrangement with creditors?". ( times out of 10 they will have to rely on your answere ( which will have to rely on your conscience ).

the_bright_side

jon-jo - I am in a similar situation, and I chose the IVA rout, as it allows me to keep running a ltd company. As previously mentioned you can’t be a director of a ltd company whilst BR, and more importantly for me you can’t be involved in the management of it either.

My rent for my house is £1500.00 and it seems to be accepted.

Feel free to PM me with questions on why I chose an IVA