5 months in!

[kahlan]

Hello all! well it's been 5 months since my IVA was approved.... starting to struggle slightly! My mortgage payments have gone up quite significantly!

I've recently started a new job and have sent off a copy of my new contract to my IP, when I tried to speak to him to clear up a few queries i have it's just messages i get from his assistant (and come to think of it I've never actually spoken to him)
and am told that I'll have to fill out a new expenditure form but by no means can i reduce my payments per month...

Am finding it hard to see the light at the end of the tunnel and I'm not really getting any support from my ip.

If it wasn't for my flat i would go BR. If this did happen would my new employers be informed? would i loose my job also (it's not a legal or financial company)

Love the forum

[MelanieGiles]

Hi kahlan

I am afraid that you just appear to be another victim of interest rate rises - I suspect that there are a lot of people out there who are also suffering - especially those people who have no contingencies built into their expenditure allowances.

In the event of bankruptcy, there is no legal requirement for your employers to be advised, but you will need to check your employment contract to see if it has any bankruptcy termination provisions (unlikely).

How much equity is there in your flat? If you are really struggling with the IVA payments, and you feel your IP is being unsupportive, then perhaps bankruptcy is a better option for you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

Keep chasing your IP for advice on this.

An option may be to switch part / all of your mortgage to interest only or extend the term of your mortgage (repayment mortgages only) to reduce your mortgage outgoings. This can usually be done at any point for a small admin fee.

If you were to be made bankrupt your employers will not be directly informed of this. You will need to check through the terms and conditions of your employement to see if you can continue your job if bankrupt.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[kahlan]

thanks for your advise!

The only thing about changing my mortgage is that my lender is included in the IVA so I can't see them being eager to help on that front!

With regards to my equity, there's not much at all!

Once bankrupt, how soon do I have to move, and would I be able to get another mortgage in the future?

Thanks again for your advice!

Love this forum!!

[MelanieGiles]

The fact that your lender features in the IVA should not stop them from altering the terms of your mortgage. That was good advice from Ollie to explore the possibility of reverting to interest only.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[kahlan]

Many thanks for your advice, I'll see what they say! (i'll keep you posted) [:D]

With regards to getting a mortgage after bunkruptcy can it be done?

[MelanieGiles]

There are a few lenders who will give mortgages whilst you are bankrupt, but the interest rate and penalties are likely to be very high. As you have an existing mortgage, this can continue during a bankruptcy, so long as you maintain the payments. If you have equity in the property, this will vest in the Trustee.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk