Community Interest Company

Pantalonas

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

fatbelly

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

Grumpelstiltskin

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

Pantalonas

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

Do just check up on beneficial interest before you decide.

sourcrates

What debt amounts are we talking about here ?

I assume they are the usual credit cards/loans etc ?

Pantalonas

Yes, £17K on c/c and £24 loans ( £19500 is car finance). 

sourcrates

Pantalonas said:

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.

katsu

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.