hi i'm new

[louisaL]

Please can I have some advice.

My husband and I brought our home last June and finding with our debts its too much to pay out each month. We pay £712 for our mortgage and because we have 50% shared we pay £350 a month for rent.
My husband has 30k of debts and i have 16k and we wanted to sell the house and go private renting for a few years for £550 so we could use the left over money to pay a debt management program.
A friend has just advised me to do an IVA but i dont really understand the difference between that and a debt management program.
My husband earns £1000 a month after taxes and i earn £900 a month after taxes and deduction of council tax.
If we can possibly help it we dont want to go bankrupt. our outgoings are £480 without debts, mortgage and rent.
so our incomings are £1,800 and outgoings are £1,452 without the debts.
What would be our best bet? To go bankrupt or sell the house and rent and do an IVA or debt management??
Thank you
Louisa

[hara]

Hello Louisal,

Well come to the forum.

What you have to do is list an income and expenditure list.

Leave out all unsecured loans.

Include all secured loans,mortgage or rent,food about 120 pounds per person per month,basically include all essential expenditure.

any surplus is disposable income left to be distributed to creditors.

You need at least 200 to 250 to left over.

You need at least 25p in the pound for a raslistic chance for IVA to be accepted .

If you did a DETAILED house hold Income and Expenditure,then one of the experts will be able to guide you.Especially Mrs.Giles and Mr.Davie.

Be rest assured that you will get free,honest,supportive and constructive advice here.

I hope the above helps.

hara

[aguise]

Hi Louisal
Just wanted to say hello and welcome.As Hara says you will get good honest advice of all solutions that are possible. Ask as many questions as you want and read some of the blogs, they are honest accounts of iva and bankrupcy.
Hope to speak to you soon

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Adam Davies]

Hi louisaL and welcome.
Can you post how much equity that you have in your shared ownership house.
If your disposible income is £350 per month then in an IVA you would return approx 15k on debts of 46k[joint] a dividend of 31p.There should not be a requirement to raise equity as you are in shared ownership although you may have to run your IVA for an extra year.
In a DMP it would take you in excess of 11 years to pay off,at £350 per month, if you could get all interest stopped[unlikely]
Bankruptcy would draw a line under your debts but your house would be at risk.
Post a few more details so that we can give you some pointers and ideas but you will need to speak with an IP to get the best advice as all your circumstances will need to be taken into account.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

If you feel that this house is a millstone, and are happy to move back into rented accomodation, I would give this serious consideration. This may well then leave you with sufficient surplus income to repay your debts in full, without resorting to either a Debt Management Programme or an IVA, but if not then with no assets you might also feel that bankruptcy is a better option.

As the other posters have already suggested - work out a present and future income and expenditure budget to see how much you can afford to set aside towards creditor repayments each month, and consider taking advice directly from an insolvency practitioner with regard to your options.

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

[louisaL]

thank you for your help!

i have rang the free number on this site today and spoke to Ali. She is going to ring tomorrow for a more detailed list as i am at work and rang on the spur of the moment just to ask mainly what it meant

i have rang a debt management company so have a detailed list of outgoings, incomings and my debts so stated above is how much we pay out per month and how much my husband and i earn.

we have approx £10k equity in our share of the property.

any more advice would be appreciated.