I am looking to an IVA as a solution

[Carl.77]

hello,
i have a loan of approx 21500 with lloyds tsb
and overdraft of 3000 at lloyds tsb and 1300 on an MBNA credit card. i am slowly sinking in to a hole where my out goings are greater than my income. i earn 1651 a month after tax and my outgoings are 1690ish (including loan payments of 550). i own my house with a mortgage of 143000 (payments are 670)

my partner tops up my account to pay the difference but we cannot afford to carry on.

i am looking in to an IVA as a solution what are your thoughts

[kazzafunk]

I presume the lloyds loan is unsecured debt? Only unsecured can go into an IVA. Do you have any equity in your property? It sounds as though you may be eligible for an IVA (depending on equity). After some excellent advice from this forum I contacted a couple of companies on www.iva.com. After taking in their advice I chose the one I felt most comfortable with and have my creditors meeting on Tuesday. Although it's not going to be a walk in the park I am so pleased I took the step.

Welcome to the forum by the way!!

[live2draft]

Hi Carl

An IVA sounds like favourable option given your circumstances. What would you say the value of your property is?

[MelanieGiles]

I don't agree. 95% of your debt is with Lloyds TSB who have a policy of rejecting IVAs where they hold more than 75% of the aggregate debt - and with only one other small creditor you would be far better off approaching Lloyds directly to try and make them an offer - they may even be able to consolidate the two debts and accept a lower payment. An IVA seems unecessary in my professional opinion.

[luluj]

I have to agree with Mel on this - speak direct to Lloyds and see if you can come to an agreement !!

[Broke of London]

Good luck with Lloyds. I bank with them and they seem very nice. x

[MRBLUESKY]

Hi Carl if you have a lot of equity in your house technically you would,nt be classed as insolvent.

[live2draft]

I don't agree. 95% of your debt is with Lloyds TSB who have a policy of rejecting IVAs where they hold more than 75% of the aggregate debt - and with only one other small creditor you would be far better off approaching Lloyds directly to try and make them an offer - they may even be able to consolidate the two debts and accept a lower payment. An IVA seems unecessary in my professional opinion.


Sorry, didn't take account of who the creditors were. The above is, of course, 100% correct; I ought to know as I have advised clients of the very same on several occasions. Sorry Carl and sorry Melanie, if I do post advice on the forum in future I will endeavour to be a lot more careful. [:I]

[MelanieGiles]

Those of us who all work in the profession should be careful of the advice we provide as people will be relying on us to get things right - especially if we are bold enough to put our names and firms behind our posts.

[live2draft]

Understood.

[kallis3]

Couldn't agree more Mel - I worry about the advice that I give sometimes and I'm not an expert as such!!

[MelanieGiles]

Your advice is different to ours Kallis - and perhaps more important in that it comes from actual experience of living through an IVA which I think is far more valuable to the majority of posters on the forum.