3 buy to let houses with no equity

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jta

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Post by jta » Tue Sep 23, 2008 5:13 pm
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I have three buy to let houses. All have mortgages which are not covered by the rents received. There is also no equity in them. What would happen to them if I went down the IVA route. My debts are bank loans and credit cards totalling £27000. My current job driving ( was in the property business) does not cover all these. How do I then make an agreement to pay a figure back?
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MelanieGiles

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Post by MelanieGiles » Tue Sep 23, 2008 6:11 pm
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Your creditors would not be happy to see you using your disposable income paying for mortgages on properties which are not covering their own costs in rental. I suggest that you look at selling the properties, writing this project off as a bad loss, and then seeing how much you are left with to offer to creditors on an ongoing basis.

How much do you actually owe to creditors, excluding the mortgages?
Regards, Melanie Giles, Insolvency Practitioner
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