Newbie

[marvin1]

Hi

I have debts over 20k with 5 credit cards and my overdraft. I already have 3 current accounts (2 are unused) My monthly outgoings are £1500 and my monthly income is £1600 after tax. So I have about 100-200 quid to spend on food and clothes and non essential items.

Would I be able to start and IVA? as I cant afford to pay off any of the credit cards I only meet the minimum payment every month.

Would my wife be affected by this IVA and would they take her earnings into consideration?

Also is there anything else I should be aware of?


Thanks

[kallis3]

Hi Marvin and welcome to the forum.

An IVA sounds like an option for you, but you do need to speak to a professional. Vist www.iva.com for a list of companies and reviews. Give one or two a ring and you will receive free and impartial advice as to all the options open to you and the best way forward for your circumstances.

As to the banks, do you have debts with them? If so, then you need to open another account with a non creditor, the Co-op comes highly recommended. If not, then there is nothing to stop you continuing to use the accounts but any overdraft facility should be removed.

If either of them are HSBC or First Direct and you enter an IVA then they will close your account. They have a nasty habit of doing that.

[lukeofyorkshire]

Hi Marvin,

Welcome to the forum and well done on seeking advice, it is the first step. As Kallis says you need to pick up the phone and speak to 2-3 companies who will give you advice on your options.

Personally it sounds like an IVA might be best for you, but do take the professional advice and I would come backto the forum for some friendly advice once you have spoken to these firms. Then you can make an informed decision.

Best of luck.

[Shining]

Hi and a warm welcome from myself too. All debt solutions can be discussed with a professional and they will tell you any effect it will have on your wife etc., Do keep posting any questions you have for guidance and reassurance we're always here to help. x

[marvin1]

We have no joint debts and I have two bank accounts that are OD free.

I have a HSBC account so I guess that would get closed. My wife has about 500 disposable income after all her payments. There are joint bills we pay so should I just make them in my name? I don't want to drag my wife into all this as the stress would be too much. Would the IVA take her income into the equation?

[lukeofyorkshire]

Assuming you both earn a similar amount then you should be contributing to the household bills on a 50/50 basis really.

If the debts are yours only then after taking into account your share of the household bills, food, personal allowances for yourself (Clothes, Travel etc) then this disposable income is what you should be asked to pay into an IVA. (Someone please correct me if I am wrong).

I would make a phone call to a few companies right away though and get professional advice, the sooner you get some answers the sooner you will start to feel a bit better.

[kallis3]

Do you have a joint mortgage? If so then your wife will be financially linked to you and this could have an impact on her credit rating.

I'm not too sure about what would happen about her earnings as the creditors may well feel that she has benefited from the date so they may well take them into consideration.

I would speak to a professional via the link I posted previously where you will get more specific advice.

[marvin1]

Hi

We don't have a mortgage as we rent but then surely if they took her earning into consideration then should she be involved in the IVA if that is the case then we cant enter the IVA as we both dont owe over 30k I just dont know what to do I am worried about contacting an IVA company as they pass my details on and you get loads of junk calls etc..


Thanks

[kallis3]

If you speak to a reputable company via the link I posted originally your details will not be passed on and you will not get loads of junk calls.