IVA Worries??

nicola302

My partner had a debt of nearly £70k, we are in our final year (6th year) of making payments and are being requested to release equity in our shared house, in total we would have paid back about £45k of the debt and £7½k in fees, if you don't own a property, i would go bankrupt as not matter what you won't be able to buy a property for the next 5-6 years if put in an iva, whereas if you go bankrupt, as least you can use those years to save what you can for a deposit once you are debt free - I wish he never got into debt, but moreover that we didn't get stuck in an IVA. but obviously research your options and pick what suits you best good luck for the forth coming years...

farquarpigmix

Like above I went to see CAB for advice. I am with payplan at present. he informed me that my creditors could go for a county court junction & then put a order on the house making debts secure. Debts at present are unsecured. have about 16 years left to pay it of. CAB also said mortgage was a priority debt (its interest only) so after 16 years I will have to sell house .

Contacted IVA company who he advised. They said pay £100.00 a month for 6 years as equity in house is nearly zero. They are charging £3,000 to do it. This leaves approx £58.00 a month to pay about 13 creditors. They also said after 6 years house prices might rise & if I wanted to I could sell then. I can't see the creditors being happy with me making money if house price rises.

With payplan at present I am paying £112.00 a month. This is going to change shortly as I have just been hit with a £3,000 council tax bill. I also owe gas & elec £750.00 Arrangement been made to pay £150.00 a month until paid of. Council tax to be arranged.

IVA company have said we will include council tax & gas & elec which has surprised me. I didn't know this could be done? Can it?

Just don't know what to do. head is in bits at present.

dancingfairy

How much do you owe at present?
Why were you getting behind on priority debts such as council tax and gas and electric while paying into a dmp (I assume this is what you were doing)?
How long have you been on a dmp for?
df
Edit: without knowing the above it is impossible to say whether an IVA would be suitable or not. If the dmp would be completed soon (or sonner than 6 years) it may make more sense to continue with the dmp. Although if you were having trouble with making a dmp payment and continued to wrack up debts then an IVA may be difficult if you can't commit to making the payments. Until a fuller picture emerges it is difficult to say.

farquarpigmix

Approx £21.000

Wife losing income. Work cutting down on overtime etc. I am the only income coming in. I only enquired about the IVA because the CAB advisor scared me by saying " they could go for CCJ which then puts a order on your house which in turn makes your unsecure debts secure" IVA advisor has said I will only need to pay £100.00 a month for the next 6 years.