Iva or bankruptcy

Karenb18

I was wondering if I could get advice here. My partner and myself are in about £30k worth of debt between us. The bills were manageable but since he was I danger of redundancy he chose to get another job which unfortunately pays a Heck of a lot less. Between us we pay £1230 a months on credit cards and loans. We have been struggling now for the past 6 months and it’s nit getting any easier. I work in a school as a senior finance officer so do not want to go bankrupt. My other half doesn’t mind either way. We got into this mess by a “friend” of ours buying a house for us to rent on the understanding that we did all the updating. The house has to be re-wired, rsj’s Replaced, plastered throughout with all new skirting and architrave, new boiler, new kitchen, new bathroom, fitted wardrobes etc. The understanding was that we could buy it back for what he bought it for. So at some point we will need a mortgage because we haven’t worked all these years to line his pockets and have nothing to show for it. We have 2 children. I was thinking that if he became bankrupt and I got an Iva we could hopefully save and then get a mortgage even though we would pay higher interest. We are both 47 so time is of the essence. All Advice greatly received. Thanks

sourcrates

Hi,


Welcome to the forum.


First thing to do is complete a "statement of affairs" this will tell us how much money you have available, if any savings can be made to your budget, or if a debt solution would be more appropriate :


http://www.stoozing.com/calculator/soa.php


Be as accurate as possible, and at the end, don`t forget to click "format for MSE".

fatbelly

As above...

You should probably check what the effect of insolvency would be on your position. It could be that going on the register (which would happen with IVA, bankruptcy or DRO) would be a problem.

When we see your soa we can suggest what would work best but only you can tell us if insolvency is out of the question given your job.

Any solution other than continuing with contractual payments is likely to impact your credit data for 6 years, but you may be best to focus on getting debt-free with a 'sooner you get started, sooner it will be over' attitude.

Karenb18

Thanks for that I shall fill it in today. The sooner something is in place the sooner we shall both feel better

Karenb18

Hi I have completed the form but it is coming up with a message about no commas in the debt section I haven’t put any commas in!
What else do I need to do?
Thanks

GDB2222

" My partner and myself are in about £30k worth of debt between us ... we pay £1230 a months on credit cards and loans."

That's almost £15k pa payments on £30k loans! And, you say it's not going down? How come? Can you switch some of it onto 0% credit cards, so some of these payments go against capital, not interest? On the face of it, the amount you are paying, you ought to be able to clear these debts in 2-3 years.

Have you really carried out all this renovation work on someone else's house, simply on the basis of some sort of non-contractual understanding? Surely, you've got it all documented and tied down?

fatbelly

Karenb18 wrote: »

Hi I have completed the form but it is coming up with a message about no commas in the debt section I haven’t put any commas in!
What else do I need to do?
Thanks

OK, just checked and it's working.

I think you have either

put a coma after the thousands in your debts e.g. 1,200 instead of 1200

or

you've accidentally put a comma instead of a decimal point e.g 12,60 instead of 12.60 somewhere in that section