Thinking about an IVA for mum & have questions please
Personally, I think my mum has a psychological compulsion that requires her to spend money to try and buy happiness. She went from a very healthy bank balance in 2000 when my father died, to having £33k worth of debt now. How she kept getting finance at her age and when she was already in debt is beyond me, but that’s another story.
She owns her own home outright and we can’t afford to lose it. She has nowhere else to go and can’t come and live with me in Spain. I’ve been researching IVA’s and it does appear that this would be the best way forward, through StepChange. I have a few questions, if you don’t mind?
- How are the repayment terms considered? She has a fixed income through her pension and nothing more. I appreciate they will review her incomings and outgoings but she is panicked that the process will leave her with nothing spare each month. Hard luck I say, but I know where she is coming from.
- I know the payments are reviewed each year and I’ve read of cases where the amount to be repaid has gone up exponentially on review. With her fixed income, which is linked to inflation, that really isn’t going to change much each year. Are we risking them asking for more than she has?
- What happens if she dies during the term of the IVA? We can’t risk the house because my sister, who is disabled, needs to move in for her own security, as she too has financial issues (I’m the only financially savvy one in my family!)
At the moment, we are managing each debt individually but it’s hard work and they are never going to be paid off. She can’t afford enough money each month to do this. Bankruptcy isn’t an option as they would take the house and she can’t have a DRO as her debts are too large and she is a homeowner.
She is driving me mad and I want to tie this financial situation down into fixed payments and with an end date ASAP. Any comments or advice would be gratefully received. Thanks.
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