IVA Best choice?

Martin1965 · 10 September 2018 at 1:39PM

Hi,
I am feeling a distinct sinking feeling and need to act fast. I have £47K in creditcard debts and £10K bank loan, and £3K in overdrafts, so £60K in total.
I have a good job but I'm only just servicing the minimum payments and its getting worse and I am not sleeping well. What makes it worse is for the first time my company doesnt give me a corporate creditcard..I am concerned taking out an IVA could get back to work or would it stop the company giving me a creditcard? I am having trouble juggling the expenses but at least I can claim weekly which I do.
I have a car worth £8K which I need for work. Will this be an issue?

Who should I go with and will I still have a card I can use for expenses?
Thanks

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National_Debtline · 10 September 2018 at 6:01PM

Hi Martin1965 and welcome to MSE,

Unfortunately, the credit card for work could be an issue. If there is nothing owing on the card at the time that you start the IVA, it would not need to be included. However, you may find (as it is very common) that taking on credit whilst in the IVA could be a cause for it to fail. If that is the case, then the Insolvency Practitioner/ creditors could declare you bankrupt, and then your assets would be at risk, including your car.

You would need to discuss it with the IVA company to see if there is anything they can suggest, but be careful. When choosing an IVA company you can try and go through one of the free debt charities for a referral or, if you shop around yourself, ensure the company you use follow the IVA protocol. This is a set of guidelines that gives you more protection, but it is not essential to follow, so unfortunately, not all IVA companies do.

Best of luck,

Laura
@natdebtline

Craig1981 · 11 September 2018 at 6:26AM

if you went on an IVA with one payment a month for all debt, would a company credit card still be needed? as you are claiming weekly expenses now and getting by, this will be easier to do when on an IVA

however, what sector do you work in? certain insolvencies and certain sectors like the financial sector do not mix, and yes, can have a negative impact on your job

an IVA, the car cannot be worth more than 3k. When i went onto mine, i got three independent valuations, which averaged the value at £4k - i wrote to the IP and advised them of age, reliability needs etc and agreed to pay the additional £1k at an additional £17 a month on top of the IVA plan, which was accepted. if trying to keep your 8k car, this would mean around £85 additional, which may not be accepted, but each case is different

speak to Stepchange, CAB, National Debtline for an assessment, and they will be better to advise about car, and especially the job

PrettyKittyKat · 13 September 2018 at 9:14PM

The credit card for expenses is something that could be written into your proposal, however whether your creditors allow it is another thing. It would also need to be very strict (i.e. always paid in full by your expenses claim) and maybe suggesting providing evidence of this regularly would help. Whether a credit card company would allow you a card and continued use when you are insolvent is another question, you may also have a very low limit on it due to being insolvent such as £500 - would this be enough?

You can proposal that you keep your car and give reasons and to why you should - however again it is up to your creditors whether they accept this!

IVA Best choice?

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