My situation is that I owe £60k and am currently on a dmp paying a token amount of £5 per creditor each month as my only income at present is statutory maternity pay. My partner is giving up work to care for the little one for her first year as this makes more financial sense than him working and all of his income paying for childcare. As such, when I go back to work I will only have between £100 - £150 available for either a dmp or iva.
Is it possible to start an iva on that amount, with the understanding that payments will increase when my partner returns to work next year? Although all of my creditors have frozen interest for the last few years and been very good about the situation, I do worry about how long that will go on for and would like the security offered by an iva.
In addition to my main income, i do some teaching for some of the year. It is not guaranteed as is dependent on student numbers. How would that be treated in an iva, would it be seen as being like overtime?
What you suggest is perfectly reasonable and the IP would just need to do a couple of income and expenditure accounts showing the changes in circumstances.
Your teaching income would be different as this would be done on a self employed basis. You could do projections for the year based on what you are sure you will make or it could be treated as a second job with a percentage introduced. You would need to ensure that an allowance is made for any tax liability and any reduction in tax credits caused by the additional income.
It is certainly worth discussing the idea with an IP firm.
I agree with Michael - definately IVA potential in there for you, and much better than a never ending DMP where you have no protection against ongoing legal action from creditors or interest being charged.
