Do you think a lump sum IVA proposal would be feasible for me?

[SKF]

Apologies if these questions have been answered elsewhere already...

I currently have approx £28000 unsecured debt.
Mixture of bank loans/credit cards/payday loans.
Split from partner last year, and moved out into rental.
We both have dependant children living with us.(one with him one with me). I work and get some benefits, but my outgoings are more than my income. Ex is not working, and still living in the jointly owned house with one of our kids. Mortgage in arrears and litigation in progress. Repossession proceedings have been put on hold by them as house on market currently. All debts in my name, and we were not married. I am currently making small/token repayment on my debts, however 2 are about to go to default stage. I am hoping to get around £4500-£7000 of equity.

In an IVA, would I be able to keep some of this money, as my car desperately needs repairs, I have a small utility debt of £500, and as both of our children contributed savings towards the house deposit (was meant to be an investment for their future) their share( in our eyes) is £500 from each adult for each child.

Also, as I currently have no monthly spare income, but a potential lump sum, do you think that a lump sum iva proposal would be feasible?

Could I do this based on a future sale?

I could possibly raise a little more money from family if given another 5-6 months.

I work for the police, and have been told that if I get a ccj/charging order/iva I should be able to keep my job, but I would be restricted on applying for another position, including a full time one, for as long as the order/agreement is in place, decreasing my chance to increase my income. Bankruptcy, unless in exceptional circumstances, is a no no. I would also lose my tenancy in a bankruptcy, which I think is the only thing left if an iva not possible.

I apologise for the long post, I hope it makes sense.

Thank you
Skr

[Foggy]

Hello and welcome. Might I suggest you pop over to www.iva.com and hve a word with one or two of the firms there, the advice is free and without obligation at this stage.

You have a complicated scenario there and it would be unwise to give general advice here and now, without some delving into the whole situation.

[Gina.gu]

As above get expert advice as its all very complicated. Only thing I would do and that's just my opinion is fix the car before entering into an iva if that's what you decide esp if you need it for work. Hope it all works out

[MelanieGiles]

A lump sum offer is definately one way to deal with your current debts, but borrowing money from family and friends is likely to be a quicker and more certain route than waiting for a property to sell in a currently depressed market. You cam always pay back these third parties once the property has sold.

[SKF]

Thank you for your replies.
I am hoping you would be able to answer a couple more questions for me.

How are fees worked out for a lump sum?
Is it that the nominee fee is taken from the lump sum available, and then
15% (or similar) is taken from the remainder, as there are no monthly payments?
Or am I completely wrong?

If a lump sum was proposed based on the future sale of a property (currently on market) :
Is the amount to be paid fixed beforehand, or is it variable,dependant on how much equity you actually end up with?
Also, do you have to pay 100% of the equity, or is it like the year 5 remortgage, with the 85% thing?....

Thank you once again for your help. Your advice is appreciated,

Skf

[MelanieGiles]

Generally with full and final offers these days, the IP will be allowed to draw a fee of 15% of the incoming funds, which will need to be allocated against nominee and supervisory fees.

Your offer would be based upon the amount of your share of the equity, after taking into accounc costs of realisation and relocation - but if you still have disposable income creditors may well want you to make monthly contributions on top.

Best to seek specific advice from an insolvency practitioner directly if you want more detailed information about your own specific case.

[GilliB]

Hi SKF. Welcome to the forum. There's great advice given here so nothing really to add, but just to say that my IVA company advised me to change my car before signing up to it, as it was essential for work and I didn't think the one I had would 'survive' 5 years in my IVA. I wasn't well enough at the time to get it sorted, but I think it was good (an somewhat surprising)advice at the time. Good luck with everything. x