Is IVA for us?

yanyan_2

My husband and I are business partners. Recent events (mainly the recession) have caused us to lose much of our business and we have scaled down to a fraction of what we used to turn over. In addition my husband has cancer which, although not stopping him from working in between times) has meant we have had to keep on a couple of drivers. Over the years we have taken out several loans to mostly help with tax bills and also sold our house for this reason. Currently we have a much smaller, yet reliable income but are struggling with these old loans and repayments for vehicles - also tax bills that keep rolling in. We are currently spending approx £2000 more a month than are earning - obviously this is draining our overdraft and very soon we will have serious consequences. We have been in business for 19 years and have always paid our debts but the figures now are just not adding up. Would an IVA be a good idea for us? Would it be in both our names? Would we be ok to retain our vehicles? I hope someone can advise. Thank you.

yanyan_2

Hi all
I was hoping for some advice from someone 'in the know' but maybe I need a more specialised place. Can anyone point me in the right direction? Thank you if you can help.

Dave_Ham

Hi there,

Not my area of specialism I am afraid, but your first stop should be to have a no obligation meeting with an Insolvency Practioner to see if it is for you.

I would imagine there would be additional complications as your have your own business and some of the debts may be business and some personal.

What I would do is write down all of your outgoings each month, how much the monthly payment is, approx. figure owed and which name they are under or if they are joint, or if they are business debts.

An IP would then be able to look at all of your circumstacnes and offer advice.

Obviously if you have mortgage free properties or large amounts of equity, or personally have high end cars then these are all additional considerations.

Have a good look through these forums and read other peoples experiences as I believe that will help you forumlate your own plan.


Good luck

yanyan_2

Thanks Dave I appreciate your input.

Anondebtadvisor

HI Yanyan

If you can do an IVA will depend on how much debt you have and how much you afford to pay every month into an IVA?

If you have equity in your property over 85% LTV you may have to release this into the IVA or extend your IVA to 72months.

I suggest that you work how your income and expenditure for your household (not including any monies you are currently paying to your debts) this will help you work out how much you have spare to pay into an IVA. A good IP will help you with this and discuss your options
x

yanyan_2

Thank you anondebtadvisor. I will speak to someone.