Hi, my partner and I owe approx 60k of nearly all on credit cards, 3.5k on an unsecured loan. We have recently had a baby and I'm currently on SMP but even when I return to work childcare means that we cannot afford even the minimum payments. We have approx £400 real dispensable income after mortgate, bills, housekeeping etc. My questions are as follows; 1. We have looked at an IVA but the figures they talked about were us having under £600 per month for everything our family needs - we cannot raise a child on such a tight budget but is there a possibility that BR would be rejected because we can 'afford' an IVA? 2. My car is on finance. If it has to go back will they allow money that would go toward an IPA to purchase another car (it is essential to get to work). 3. We are both going to file for BR - once both accepted will the OR look at our budgets jointly (I wouldn't earn enough to pay into an IPA but my partner would)? Thanks.
1. No, provided you are insolvent you are able to declare BR however when you are declared BR you will also only have a certain budget that you will be allowed. For 2 adults/1 child it will be roughly £400 for food/housekeeping, £125 for clothes and your utility bills and travel to/from work.
2. If you continue to pay the finance there is a chance you could keep the car. If the car is taken then the OR won't allow money to be taken from the IPA to save for a car but you would be allowed travelling to/from work as part of your expenses.
3. The budgets would be looked a separately.
Please don't think that BR is an easier option than an IVA because depending upon the circumstances it isn't always. I don't know which IP you spoke to regarding an IVA but I would recommend speaking to Melanie Giles if you haven't already - http://www.melaniegiles.com/.
Hi, my partner and I owe approx 60k
Posted - 29 October 2009 : 23:16:54
