IVA questions

Hi,
So i have gotten myself into a complete mess, all my fault and i am getting some mental health help with the reasons i did this, but basically i am now in a lot of debt (apx £26000) i dont have the income to do another DMP, so after going through Step change it looks like my only option is an IVA.
This will be in my name only as all the debt is in my name, my husband has no debt at all. The money used will be from my income alone.
My questions are, it says that any assets i have may need to be sold and put towards the debt. I have no assets whatsoever, my husband however has a big and expensive collection of guitars and music equipment. None of it belongs to me, and everything he has was ordered in his name only, can they make him sell his equipment for my debt? If so then there is no way im going to get an IVA, its not his fault that i've gotten myself in this situation.
Also i get a student loan. The first 2 payments have gone, but i will be getting another payment in April and then it will start again in October (it is likely to increase then as well). Will they make me put the entire loan on the IVA, or will i only have to part with some of it? I dont mind paying them a chunk, but i do actually need a good majority of the loan for the house bills etc. Would transfering the amount of the loan into my husbands sole account circumvent this? As i said i have no problem giving them a good chunk to get the debt down but i just do not want to lose the entire loan.
With this is mind is an IVA the right solution for me, or should i be looking at bankruptcy or a DRO? I worked out that after bills and household expenditure i have around £75 a month for debts spare.
I am waiting for step change to contact me about this, and i know they will be able to help me, but i was just after some advice.

Comments

  • RAS
    RAS Posts: 32,466
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    Really, really confused as to why Stepchange have suggested an IVA? Was this a result from an interview or just one of the possible options from an on-line assessment?

    IVAs are suitable for those with major assets to protect, like a house with equity and with a stable income over the next 6 years. Your current disposable income wouldn't even cover the fees over the next 6 years. But if you graduate in a few years and get a decent job you could end up re-paying the entire debt and the fees on top.

    Much better you do SOAs based on your current household income and your personal income, so people can check that you have included all your necessary expenditure. Then people hear can advise you better.
    The person who has not made a mistake, has made nothing
  • sourcrates
    sourcrates Posts: 28,548
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    I`m not sure where you are getting this misguided information from, I think you are confusing different debt remedies here, there is no requirement in any debt solution to sell anything for the benefit of your creditors except in certain circumstances in bankruptcy.

    And if you lack sufficient income to do a DMP, then the same also applies to an IVA, minimum IVA payment must be at least £100 a month.

    IVA`s are really only for those with assets to protect, If your disposable income is £75, you need to play around with the figures a bit, and see if you can match them to the DRO criteria, the stepchange calculator only works on specific parameters.
    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 [email protected]. 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
  • i do qualify for a DRO, im not a homeowner, i am disabled on benefits, i have no assets at all, £75 is the limit for a dro and thats how much i have left. The problem i have is that my money comes in on different days every month, so some months it looks like we have had more then we actually have, and because none of the calculators take that into consideration they just average it out for the month. I am hoping step change will call me today to talk this all through.
  • stu12345_2
    stu12345_2 Posts: 800
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    edited 19 January at 11:52AM
    take your yearly total income then divide it by 12 to get an average  monthly amount, to see if you have more than £75 a month left over 
    pay your debt at your rate.not what the creditor demands.cos they have no power.they aren't the police.
  • fatbelly
    fatbelly Posts: 20,240
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    If you qualify for a DRO, do a DRO. Stepchange will have to pass you on, to CA or Money Wellness, as they no longer do DROs.

    So they may give more consideration to an IVA than they should. Please report back to us.

    The student loan is not a qualifying debt. You are not counting that in your 26k, are you?
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