www.iva.co.uk

Posted: **Fri Jan 30, 2009 7:52 pm**

My mother (75) has 3 credit card debts totally £30,000. She has already taken equity out of her property. Can she apply for an IVA?

Posted: **Fri Jan 30, 2009 7:59 pm**

Hi, and welcome.

It will all depend upon her disposable income after the priority debts have been paid.

I recommend that your mum contacts an Insolvency Practitioner to discuss this with. She can either visit www.iva.com where you will find a list of companies and reviews, or click on the expert link on the left hand side of the page. All the professionals come highly recommended. They will discuss all the options open to her and advise as to the best way forward.

Your mum is very lucky to have you to help her sort this out.

Posted: **Fri Jan 30, 2009 8:00 pm**

Hi there and welcome to the forum

Technically the answer is yes, if she has a regular level of surplus income - however she should be very careful about considering if this is the right option for her. Has she considered whether bankruptcy might be a better option, and if so how much equity does she have in the property now?

Posted: **Fri Jan 30, 2009 8:42 pm**

Mum and Dad only have state pensions plus dad has a small company pension. They dont have any other income, it has been suggested that she pay £300 per month for 12 years to clear the debt! They have taken equity from the house in the past, if she applied for IVA would they have to take further equity from the house?

Posted: **Fri Jan 30, 2009 8:53 pm**

With an IVA, if there is equity, then she might have to release some in the 4th year.

With bankruptcy, if the house is in negative equity then your parents could probably keep it.

Posted: **Sat Jan 31, 2009 12:09 am**

Can you not get a free valuation done and say its for a quick sale to the agent?,if the house is showing neg equity and they are on benefits and pensions they will keep the home and more than likely pay nothing towards the BR.

there is also the option of a smaller full and final settlement if she has anymore equity in their home or can raise the funds i am sure the experts on here can advise you further

Posted: **Sat Jan 31, 2009 11:17 am**

I agree, get the house valued to see where they stand as regards that.

An IVA is for 5 years - a long time when you are at their stage in life. Bankruptcy would be a clean start for them, and as lost says,they may not have to pay anything across.