only covering the interest owed not the capital

[crystal]

After reading about IVA my husband and i after two children and both going self employed have amounted debts of approx £30000 we are able to just about make the payments however are only covering the interest owed and not the capital.

We run our own limited company would we have to dissolve that company for the approval of an IVA? How does it work with Credit cards? Would we have to sell our car? What about mortgages - can you still be a home owner and have an IVA?

Many thanks

[MelanieGiles]

Hi crystal and welcome to the forum

If you were to enter into an IVA, your limited company would continue trading normally as I assume it is providing you with your incomes. If you have personally guaranteed any limited company debts, these companies will have to be notified as contingent creditors.

You may be required to sell your car if it is of high value - I usually judge £8,000 to be a reasonable sum, however this depends upon your own circumstances. You may still own your own home, but any equity will usually have to be taken into account either at the beginning or end of the IVA. Do you have equity at the moment?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk