I am hoping to get an IVA. I am currently working two jobs which was intended to pay off debt - but no I'm too far gone. I am currently working 75hr weeks to pay off as much debt as possible but even this isn't keeping our heads above water.
Working such long hours has had a negative affect on my home life nad if I enter into an IVA I would like to cut my hours in the second job considerably.
I have heard that if I had taken out the second job after the start of the IVA then I would be able to keep up to 10% of my main salery and then the rest would be split 50 / 50 between me and the IVA.
Because I am already in this job, where do I stand?
Nobody should be working those hours to pay off your debts.
You need to speak to an expert - visit www.iva.com for a list of companies and reviews and give one or two a ring for some free advice. They will advise as to the position with your second job.
Dont let debt ruin your life, you can still pay off as much as possible in an IVA so its not like you are trying to get out of paying, it just means you are paying the loan not just interest. You have probably paid back so much already. As you are in this job already it will all be taken into account when working out your monthly payments so before applying for an IVA you should decide if you want to keep living like that. My advice would be to quit the second job or reduce your hours if it is hurting your family and do the IVA based on that income. If you are working full time and paying back what you can then you are doing your best! Fair enough if by working this second job for a certain amount of time was going to pay off your debt then it would be worth it, but if its not working then definitley get your life back and go for an IVA. If you start the IVA based on all those hours of work and then later have to reduce it may be harder to reduce your payment once you have agreed a certain amount with your creditors.
If I gave up my second job, our disposable income would be £205 with about £40000 debt. (This is a joint IVA with my wife). I would quite like to keep working my second job for a few hours a week as I quite enjoy it and have made freinds there. Say I was to earn around £120 extra in this second job per month, would I be able to keep any of it or would it all go to the IVA?
Those figures could work in an IVA so do speak to several experts/companies.
Any second income you would split 50/50 with your IVA, however this would be after any extra expenses [travelling ?] had been deducted
If the second income is being earned at the time you enter into the IVA, them it will be taken into account in calculating your disposable income which will need to be offered to creditors in its entirity. An IVA ought to work for you on payments of £205 per month for £40k of debts - I would certainly take that case on at those levels - so is the other job important if you are not going to get anything out of it?
Thanks for the responses. So the 50/50 split that Andy is suggesting would not be the case? I would be more than happy if I could earn, for example an extra £100 (per month) from my second job, have some extra cash for myself and pay more into the IVA and possibly have more chance of the creditors accepting the IVA proposal? Is this a possibility?
It could be proposed, but I would expect creditors to want the full disposable income, on the basis that other people could say they wanted to keep some of their money for extra cash which would not go down too well. If you were not to have the job at the time of entering into the IVA, but to get one after the IVA was accepted, the the 10%/50/50 rule could be applied sussequently.
