Do I go for an IVA?

Nattylou74

I'm so confused.

1. Ex husband lives in marital home with son, aged 15.  Recently back in work after being furloughed and then unemployed.  Hasn't made a mortgage payment for 15 months.  My name is on the mortgage, but when we split, he wanted me out of the house.

2. I have 10k of debt and a not great credit score

3. I'm in a rented property.

4. My parents have offered to buy me a property (approx 110,000).  They want me to be debt free before they do, so they can rest assured that no-one will take the house off me.  They are not getting any younger.  Time is of the essence tbh.

So, do I go for an IVA, get rid of all my debts in one fell swoop (I know it lasts for 6 years).  Ex husband is starting to pay the mortgage again this month (So he says).  

Pros and Cons of an IVA?  Would it stop the house purchase? It would be a cash purchase.

Thank you in advance

Grumpelstiltskin

Personally I would say no.

Have you spoken to one of the free charities?

IMPORTANT - Where to seek professional impartial advice about your debts. — MoneySavingExpert Forum

Nattylou74

No not yet

Grumpelstiltskin

Right start with one of the charities Stepchange is spoken highly of, the amount you owe is way to small to think of an IVA plus they are usually only suitable to home owners.

fatbelly

I don't see that that idea has any merit. Your parents sound like they don't understand non-priority debt.

10k is not a lot for someone who's working and presumably when you live in the new house (whether it's owned by you or them) you will not be paying rent and you will be able to clear that really quickly.

If they insist on you clearing the debt before you have the increase in surplus income (which to my mind makes no sense) then post a statement of affairs and we'll have a look at it.

https://www.lemonfool.co.uk/financecalculators/soa.php

I would expect that you would be able to do a debt management plan if you have reasonable surplus or a DRO if not - they're clear in 12 months.

sammyjammy

If you own another house outright and the mortgage with your ex continues to go unpaid this new house could be at risk too dependant on value etc.  Have you discussed him remortgaging in his own name?  Presume with arrears this will be difficult.  Are you owed funds from the house should it be sold or you cease to be part of the mortgage?

Lastly are you actually divorced?