Quick question about IVA's

mletters

Hi,

My partner has run up debtson CC's & Loans to the sum of £26k

She only works part time and now doesn't have the means to make repayments (she was stupidly using savings which have now dried up).

I've only recently found out about this mess, and instead of taking a huge secured loan over 15 zillion years to pay this off, we are considering IVA's to clear most of the debt.

How do these work?

Will it affect my credit? When she spoke to somone on the phone (she called Citizens advice), they said that I will of course have to declare my income (just to show I'm not a millionaire or wealthy premiership footballer or anything), and also she will have to list outgoings etc., and how much she can afford (she earns £500 p/m). Total debt £26k.

Is the remaining debt written off after 5 years?

Sorry for all the questions!

Thanks in advance,

Mike.

CLAPTON

it depends upon her circumstances ......

she needs to post up a SOA so the details of income, spending, assetts (property) and amount available for debt repayments can be seen.

fermi

Martin's guide to IVAs should help you answer most of those questions (and others).

Link: Guide to IVAs - Are they worth it?