Hi my mortgage will be clear and paid off. The shortfall is on the secured loan I took out way before my Iva started. Bankruptcy would clear the shortfall wouldn't it? I really do not know which way is best. Just feel like there is no light at the end of the tunnel. I appreciate that these are my debts. I have taken responsibility. But as soon as I get on some sort of even keel. I get kicked in the teeth and everything goes pear shaped. I dont want my Iva to fail not after all this time. Not sure it will be my decision.
Are you still living in the property? If so then it will be at risk with bankruptcy.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sorry if my post above wasn't clear by using the term 'mortgage shortfall' Mortgage shortfall/secured loan shortfall its the same thing - the shortfall should be cleared through your IVA as long as they were notified/listed as a creditor/contingent creditor and there were no minimum dividend terms that can not longer be met.
If the mortgage is paid off though then surely the property would be at risk if Chappie decided on bankruptcy?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think I am confused here. I had assumed (perhaps wrongly) that as the mortgage had been paid off and there was a shortfall to the second secured creditor that the property had been sold...
I think we both might be a bit confused!! The secured loan shortfall would be included but with BR, and a house with no mortgage then surely that would be at risk?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If the property is still available and there is a shortfall to any secured creditor once the property has been sold then the shortfall is either an unsecured creditor in the IVA or if BKY ensues then it will also rank as an unsecured creditor in BKY.
If there is a house with no mortgage then that suggests to me there is sufficient equity for the secured chargeholder to be no paid so there would be no shortfall...
I need a lie down!
Chappie - can you clarify please what the position is with the property and all charges on it?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
That's correct Lisa. My property was repossessed not by the mortgage company but by the secured loan company. The money from the house sale has covered the mortgage with some spare but not enough to clear the loan. I have not heard from my mortgage company to confirm all this. They have told me they will be in touch. Dont wont all this to be in vain. I gave up my home to try and ease the stress of the loan company always ringing for money. I'm in a mess. I worry constantly about money. It was such a relief wen my Iva was accepted. Now its turned into a nightmare. I really appreciate all your advise and am so glad thus forum exists. Its a lifeline for some people that are so stressed with worry.
If that is case then BR could be the best way forward for you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Won't they take your payments to date as a full and final?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
They wouldn't last time I asked kallis3. I have had an email from them whilst I was at work today asking me to contact them. I will.keep you posted. I would feel sick now having to start all over again with bankruptcy. 9 years wasted. Fingers crossed I can get this sorted. Thanks
Any surplus from the property sale will firstly belong to the second charegholder. Once their (estimated) shortfall has been calculated they should be able to simply claim in the IVA.
I see no reason for your IVA to fail and for you to go BKPT over the shortfall.
