IVA's and how do they work if you are married?

Pippad

Hello!

My DH and I have a lot of debt (I am embarrassed to say how much, but basically it is my fault as I lost my job a few years back after we just got married and being young and foolish we lived on credit cards, DH just has a tendancy to spend which with my help he is stopping!).

I have taken some more control of the finances now he has told me the full exent of the problem and we have managed to make a couple of extra small payments on some of the debt, but at the moment we are just managing to keep our heads above the water and this is before my maternity pay goes down to the minimum.

DH works 7 days a week and runs a website from home so is exhaused and is frightened he is missing out on home life (we have a 4yoDD and a baby due today) and so is looking into an IVA. He has a pack coming to him and has an appointment so he can work out if this is the route to go, but my question is more "what about me?"!

As DH is the main earner in the household I am worried that my wages won't cover our bills and food etc as well as things like clothes and gifts for our children (not that they are spoilt!). If I were to work FT and not pay for childcare we could just do it on my wages but that isn't going to happen!

Can anyone let me know just what we are letting ourselves in for if we do take this route?

Thanks

PippaD

Krasnoludek

Hi Pippa

Congrats on your forthcoming arrival!

We are in a similar situation to you and were considering an IVA for our debt which is around 19k.

We went to Baines & Ernst and were advised to go for an IVA as they told us we would only pay back half of what we owed as the rest would be written off after 5 years, which is completely wrong ! So glad I posted on here or else we would have signed on the dotted line!

An IVA is only likely to be accepted is you owe more than 20K and you can prove that you have the surplus amount from your budget to comfortably meet the repayment, we had basically been told to make up our own budget and cut corners here and there by B & A but it would be ok - which again was wrong.

When I asked them what would happen if the IVA was not accepted by the court or creditors I was told that I would be put on a DMP and they would apply in a few months time, during that time I would have to pay them to run the DMP plan for me (how kind of them!) oh and they also wanted two months worth of the IVA or DMP payment upfront just to attempt to get an IVA which came to 300 quid.

Thanks to the people on here we didnt go for it and rang CCCS who arent in it for the money and went through our budget according to government guidlelines for a married couple for two small children (like you) unlike previously when we were told it was ok to make our own budget and propose it (wrong) creditors are more likely to accept it as the government guidelines actually allow you to live and you are more likely to stick to it as it has been worked out reasonably and not by someone who is looking to make a profit from you.

What we werent also told was that in the 4th year of an IVA if you own your home you may be asked to get it valued and remortgage it (obviously if you are in a bad way credit wise you will be going to a sub prime lender and possibly paying more) oh and if you dont stick to the IVA and its run by you by a reputable company and you cant keep up the repayments, the creditors can force you to go bankrupt which would mean losing your home.

Dont get me wrong I think an IVA for some people might be a godsend but we were completely in the dark about it and we given incorrect information, if I were you I would call CCCS or similar not someone who is making money out of it. They are very non judgemental and I can actually sleep at night knowing I have some help

Good luck with whatever you decide and also with the birth!

K xxx

Pippad

Thanks for the reply!

DH actually has the appointment with CCCS (I couldn't think what the name was hence why I left it out!) and they were really helpful when he phoned them. They apparently were shocked as we don't drink or smoke, we haven't defaulted on any payments etc but the debt amount is way over £20K!

I did know about the re-mortgage bit in your fourth year and this did upset me a little, but DH seems to think we won't have that much equity by then in the house anyway!

I think I might ask to go to the appointment too as at least that way I will hear all the information first hand and if I don't understand I can ask questions!

DH just seems to think that it will affect him only, but I don't see how. I understand the debts are in his name only, but I am responsible too! Oh well I am sure that it will all work out!

Pippa

Pinkylouloubell

hi pipad

My partner and I too are looking into an IVA.

We owe £42,000.
Mainly in his name but about 17k in joints.

What we have been advised by CCCS is to try appling for one with me linked to it, otherwise I will be responsible for the joint ones even if they are included in his IVA.

In the eyes of the law, whoever is on the signed document is responsible for the repayments,

I too class the £42 as OUR debts as we both spent the money.

Hope you get it all sorted,

XX