Lots of debt, Iva or dmp?

dancingfairy

O.K so you half of the household bill come to approx 800. If your income is 1600 and the household bills come to 800 a month that leaves 800 towards the debt repayments.
800 towards a dmp for 40k would take 4 and a bit years if all interest and charges were stopped so with interest and charges you are looking at maybe 6 years.
An IVA would see you pay into it for 4/5 years plus you would have to at least attempt to remortgage after 3/4 years. How much equity do you have? I believe half of whatever equity you can get would need to go to the IVA (which would be your share).
Bankruptcy doesn't appear to be an option if there is equity in the house so you are looking at either a fairly long dmp or an IVA and it's 50:50 between them depending in your personal preference.
Have you had a chat with one of the debt charities such as Stepchange or NationalDebtline or your local CAB?
df

dancingfairy

If your partner was able to pay the bills it looks like between you you'd have 1500 a month to pay towards the debt repayments which could start to make a significant dent in the debts.
df

tallyhoh

have you got sickness insurance on any of your policies?

Tables

Thank you all so much for your replys, I think I'm getting very close now to the answer of which route I should go, if I can just give you knowledgeable people the right Info now I think I will know what to do! So very much appreciated. Ok

The house is my main concern, as my partner and I saved for the deposit for years, we proudly exchanged only back in January of this year, we obviously own the house 50/50, and as confirmed by mortgage man, we obviously have next to no equity in the house. But what if I take the Iva and the house prices rise, then I will have to release the money to pay for the bills, therefore affecting my partner unfairly because of my actions. I will however approach her about helping me pay the bills, and she will have her money back in equity, I will ask the mortgage man, good suggestion. When you guys say about putting our money together so to speak, do you mean to carry on paying bills or to pay in to the dmp? As I have said the house is priority, it's not a possible to remove myself from the mortgage for length of time in in the Iva or dmp then be re added so technically I have no house? I'm just renting?

Tables

Ok, I now know that removing a name from a joint mortgage is incredibly difficult if not impossible, but what about equity change between us? Clutching straws

Tables

dancingfairy wrote: »

O.K so you half of the household bill come to approx 800. If your income is 1600 and the household bills come to 800 a month that leaves 800 towards the debt repayments.
800 towards a dmp for 40k would take 4 and a bit years if all interest and charges were stopped so with interest and charges you are looking at maybe 6 years.
An IVA would see you pay into it for 4/5 years plus you would have to at least attempt to remortgage after 3/4 years. How much equity do you have? I believe half of whatever equity you can get would need to go to the IVA (which would be your share).
Bankruptcy doesn't appear to be an option if there is equity in the house so you are looking at either a fairly long dmp or an IVA and it's 50:50 between them depending in your personal preference.
Have you had a chat with one of the debt charities such as Stepchange or NationalDebtline or your local CAB?
df

Hi yes, I've spoke to stepchange and they say go for the Iva, but I can't seem to make them understand the importance of the house? If I had nothing to do with house I would just go straight for the Iva. We have owned the house since January this year, so have no equity but bphouse prices are rising, and in 3/4 years will we then have equity???? So it's gotta be a dmp because It's unfair on my partner to have an Iva and the house at risk in the future? But what if not all creditors agree, or not agree to stop interest? Maybe the "combine incomes and give equity to partner is the best solution?? Wok knows!!!!!

longtermplanner

If you go for an IVA, only your half of the equity will be at risk.

Have you considered the alternative option I and dancingfairy suggested?