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Hello, I'd be very grateful if you could help me because I'm very concerned by my debt situation, I haven't told my girlfriend the extent, and I'm worrying myself!

Here are the details:

DEBT:
HSBC Loan - £22,000
Egg Card - £5,000
HSBC Card - £2,000
Virgin Loan - £5,500
Halifax Loan - £9,500
Virgin Card - £6,000

Total: £50,000

PERSONAL DETAILS:

I am a joint homeowner with my girlfriend and I own a company which brings me in about £2,500 at the moment. The company is a limited company but I am the only director and I do not employ anyone in the UK (all offshore).

Bought my flat for £285,000 with a mortgage of £270,000. We've paid £1500 every month for about 18 months now (around £27,000).

I pay around £950 per month just in credit card and loan repayments.

I personally pay £950 per month for my mortgage.

MY QUESTIONS

I've been reading about IVA's, but I'm very concerned that it will affect my homelife and career badly.

Firstly I am a Director of a company and I'm not sure how this may affect my position, my ability to become a Director in the future.

Secondly I am keen to deal with these problems by myself and for it to not affect my girlfriend. If I took out an IVA, as joint owner of our flat, will she be notified?

Thirdly, my flat. Would we lose our flat? Would we lose ownership of my flat - even for a brief period of time?

Fourth, is there alternatives to IVA's. i.e. should I speak to my bank about my financial problems and look at setting up a loan that covers my credit cards for example, or increase the terms of my loans to reduce the monthly payment?

Thank you in advance for your help.

Machts

Hi there Machts and welcome to the forum.
Be patient and hopefully Melanie or someone with more technical knowledge will be along to advise. It will help if you can work out your actual disposable income, (what you have left after paying normal living costs etc, dont iclude any of your debt payments just what you need for living)
There is always a solution to these things so try not to worry. Most have found that the support of their partner has been invaluable, and many have found it difficult to get the courage to admit their problems to them, but all that I can recall have had great support, but you know her best.
Anyway just wanted to say hi and hope you find the forum as invaluable as most do.

Ang

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

Hi Machts

Welcome to the forum!

If you can provide us with more info we will be able to help you and an IVA would be a good way to deal with the problem.

If you go into an IVA you will be able to remain a director but operating a bank account could be difficult so you might need to consider seeing if you can find someone who can help you with this.

I hope this helps and takes some of the worry away from you!
Good Luck

Ray

Hi Machts,

I'm sure Melanie or Andy or another of the experts will be able to advise, they know exactly what they're talking about and will help you identify options and a positive way forward.

On a personal note, worth giving yourself a pat on the back for recognising the problem early and looking for real solutions. I know I'm no expert, but at 50k debt I recall doing just what you've identified above, further consolidation loans. I don't know if that course of action is right for some, but for me it was just more borrowing and the beginning of an even deeper hole. If you're struggling now, borrowing more might not help in the long run.

Whatever you decide I'll wish you the very best of luck getting it all sorted, and whatever solution you opt for, stay in touch with the forum, you'll always fing great support here and many people who will understand from experience exactly how you're feeling.

Martin

Hi Machts,

I was in the same boat as you a few weeks ago, as my husband new nothing of my debts that i had run up on credit cards/loans etc. I ended up breaking down and telling him one night, and he was fantastic, he has supported me throughout. He has no debt at all. We have had our ups and downs, but everything was fine. I do urge you to speak to your girlfriend about our debt, as with you having joint ownership of a flat, if you went down a IVA route, they would want you to remortgage in year 4, and release your share of the equity, then she would find out anyway. From my experience, its better to be upfront, than her finding out from another source.

Hi, thanks for getting back to me so soon!

Thanks also for the advice.

You mention my monthly disposable income: I guess I've never really worked it out because if I'm honest I don't really spend a lot of money on things - most of my money goes on the mortgage, debt repayments, and then the important things like household bills and food. I don't have a great deal for eating out, clothes, pub, etc.

I understand that recognising the problem is the first thing and I've been in the situation before where the banks have offered me a consolidation loan, and then after a few months I'm back where I was.

If I'm honest, I just don't know where the money goes, but with around £950 debt repayments every month I think I'm just managing to keep my head above water.

The thing that really got me thinking was - and this is not meant to tug at the heart strings - that I want to ask my girlfriend to get married and I honestly don't have the money to buy a ring - I don't even have any credit on my credit card because its all full up.

Would my girlfriend understand? Possibly. We'd certainly stay together, but she worries about debt a lot and I'm a bit more lackadaisical about it - which I guess is why I'm on this forum.

Because I'm a Director of a company and the main controller of the company bank accounts I am thinking that a IVA may not be the best route - based on the comments below.

But I am hesitant to get in touch with my banks and tell them of my situation because I don't know the ins-and-outs of what they'll do. For example if I say to Halifax that I wish to increase my loan by 10k to then put two credit cards inside, if they then run a credit check and then reject me, the changes of me then getting a loan with another provider may be slim because they can see that I've already tried with other institutions.

In short, I'd rather have one £50,000 loan with a reasonable interest which I know will be paid off in 8 years, than all these credit card which I know are not really being paid off.

Anyhow, that's my rant/confession for this morning. I'm really at a junction of deciding what to do, and any expert help from you guyw really would be appreciated.

Many thanks

Hi Machts,
I cannot give any financial advice, but I can say you have found an incrediable forum, full of wonderful people, who will give you plenty of sound advice, help and support. It is difficult and very worrying facing debt, but you have already taken a huge step forward by admitting you have a problem and need help. There is a solution and you will get this sorted, Melanie and her team are wonderful and will give you sound, honest advice and will do everything possible to find a solution for you, so it is well worth giving her a call for some personal advice. Melanie, Hywel and the team have helped me out of a huge black hole and put me back on my feet, so I can say from experience that you will be in safe hands. I know how difficult it is to tell loved ones of the problem you are facing, it is hard to admit it to yourself at times, so I know what you are going through. But I can only say it will be much easier to get it out in the open and face this together. Sometimes when you have so much weight on your shoulders you think you are carrying it and hiding it from those close to you, but often there are many signs that there is something wrong. Loved ones and those close to you may have already guessed that there is something wrong, and are wondering what it is and long to help. Keep posting and you will get some advice soon, hope it all works out for you and you can find some peace of mind soon.
Best wishes
Mike

Hi there - some good advice already given by the previous posters, and now for some technical advice:-

1 You can continue to act as a company officer for the duration of the IVA, however banking issues may be difficult so do discuss this with your company bankers to make sure that they will continue to support.

2 Your girlfriend will need to be advised of the IVA, as you will most likely be asked to raise equity at the end of the IVA which your girlfriend will have to agree to. Has the money you have borrowed all be spent on you, or has your girlfriend in any way benefitted from the borrowings?

3 It is unlikely that you will lose your flat, but as I mention above equity raising is a distinct possibility.

4 There are alternatives to an IVA - you could enter into a Debt Management Programme, however this would be open-ended with no interest moratorium or legal protection from creditor actions. Bankruptcy is also an option, but one I guess you want to avoid given your directorship and flat ownership.

At this stage I suggest that you take more definitive advice from an insolvency practitioner directly.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp