Community Interest Company

Hi,

My wife and I have been in contact with Pay Plan and it looks like we are either going onto a debt management plan or IVA. My question is, a group of us are looking to set up a community interest company for some volunteering we do, would a DMP or IVA prevent me from being a Director of the company? Would it fall under 'being a fit and proper person' etc ?

Thanks

P

Comments

  • fatbelly
    fatbelly Posts: 20,489 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    A dmp is pretty much invisible unless you are one of the creditors in it. However, an IVA is a public declaration of insolvency and you then appear on a public register that anyone can search.

    So it might.

    We have seen a few cases on this board where Payplan have pushed an IVA when the benefits are marginal. If they are giving you the choice it sounds like it's not clear-cut
  • Before you agree to an IVA you need to be 200% sure it is the best way forward.

    You need to research, research, research the full implications of an IVA.

    Have you contacted any of the other debt free charities?

    Read this  IMPORTANT - Where to seek professional impartial advice about your debts. — MoneySavingExpert Forum
    If you go down to the woods today you better not go alone.
  • Thanks for this greatly appreciated. I think the reason for DMP/IVA is because the house is in my wife's name and has loads of equity (bought in 2000), she is self employed and I am employed, we each have our own bank accounts. Today they have said my wife cannot have an IVA so will be DMP whereas as I can have an IVA or DMP. 
    I will do some more research though - great point. Thanks for your advice. P
  • RAS
    RAS Posts: 32,655 Forumite
    Name Dropper First Anniversary First Post
    Do just check up on beneficial interest before you decide.
    The person who has not made a mistake, has made nothing
  • sourcrates
    sourcrates Posts: 28,876 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    What debt amounts are we talking about here ?

    I assume they are the usual credit cards/loans etc ?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Yes, £17K on c/c and £24 loans ( £19500 is car finance). 
  • sourcrates
    sourcrates Posts: 28,876 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Yes, £17K on c/c and £24 loans ( £19500 is car finance). 
    It will depend on your income etc, as to which option to choose, with a debt of 41k an IVA is looking more favourable, but having said that it does depend on how much you can afford to pay on a monthly basis.

    If you have a high amount of disposable income, then its likely that in an IVA you would not get much of that debt written off, were as with a lower monthly payment, you would.

    The more you can afford to pay, the less is written off.

    A combination of debt management and later on, settlement offers, is the alternative choice.

    But as I said before, it all depends on your disposable income which option is best for you.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • katsu
    katsu Posts: 4,947 Forumite
    First Anniversary Name Dropper First Post Mortgage-free Glee!
    I think an IVA could be an issue for the fit and proper person requirements. You can contact the Charity Commission if the CIC would be registered with them in England and Wales. They are very helpful about general principles so you can call them and ask.
    Debt at highest: £8k. Debt Free 31/12/2009. Original MFD May 2036, MF Dec 2018.
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards