www.iva.co.uk

HI
I have debts of 35000 approx whihc I am struggling to pay, I have contacted my creditors and had they agreed to accecpt reduced payments for a time but some of them now want me to start paying the full amount each month whihc I can not do. My take home pay is 1200 approx each month and I get 300 approx in family allowance and family tax credit. My monthly outgoings without paying any creditors is 1200 approx do you think I would be accepted for an IVA. Also what would happened when the family allowance and family tax credit stopp in 2 to 3 years time when the children leave school. Sorry one more question part of my debt is 3500 overdraft with my bank how would this affect my bank account? many thanks

Hi Vb and welcome
From the info you have given your disposable income is about 300 so just my opinion but with the credits stopping in a couple of years then it would be even less an iva runs for five years and you could hit problems at that point. If you could post more of who your creditors are if you rent or own your property then others will be along to advise. Bankrupcy is the other option, from which you would probably be discharged after 12 months and would make little or no payments for up to three years. As for the overdraft in an iva or bankrupcy it would be included, you would need to open another basic account, there are lots but avoid for obvious reasons your creditors. Will give more info on that later.
Just want to say try not to worry there is always a solution and keep posting anything you want even if its just a moan you will never be judged on here.

Ang

Hi vb

Given the uncertainty of your income during the next five years, it seems that an IVA is risky for you as it may fail when you lose your child benefits. A Debt Management Programme could be a more flexible option for you, albeit you will have to repay your debts over a much longer period, or as suggested by Ang you should maybe also consider bankruptcy proceedings.

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

Hi thanks for the replies,my debtors are credit cards wuth capitol One, Tesco, Citi and Halifax, loan with Abbey and over draft with Haliax.I own my property.Melanie suggests Debt management programme would she recommend some firms. i would rather go down road of DMP or IVA rather than bankrupcty.
Thanks