A LITTLE ADVICE PLEASE

[stresshead]

hi...
i have just found this site a couple of days ago and have found out some very interesting things while browsing through however i need a little advice on my own iva...

both my partner and i entered the iva together:
our total debt was £32,000
our iva was accepted just over a year and a half ago
since then i have had another child and cant return to work due to no child care...
also i was made redundant from my other job..
my partner was made redundant at the begining of october last year from his main job but three weeks ago started a new job...
how ever our income has dropped by about £550 a month...

we are currently paying £390 a month in to our iva(over a five year period) and the last couple of payments have been a huge struggle due to the increase in expenditure due to the new baby and also the huge drop in our monthly wage..

i have spoken to my ip and she has sent me a figure of a minimum of £13.677 that my creditors will would settle for....we have already paid about £6,500 in monthly payments

the creditors were to recieve .43 in the pound
supervisors fee ect were £9,486 alltogether

we got a phone call on the day of the iva meeting from our ip ..she said the creditor had requested the four year clause thing and asked me if i agreed to it ..obviously i was going to say yes!!

however we didnt anticipate the change in our family and in our jobs..

we first took out our morgage 2 years ago with yorkshire bank under the council right to buy scheme we got it for £46,900 it is currently worth £70,000 we cant sell the house for at least another 3 years and walk away with the profit to use it to pay off the debts as a huge percentage would have to be returned to the local council ..so there would be not near enough..

how ever we are thiking of remorgaging and trying to settle early as there is no way we could keep up withpayments of £390 a month with our drop in wage...
the whole iva thing terrifies me to be honest and for the past six months have been on antidepresents

if you require anymore info please let me know

please could i have some as my head is going to explode soon

[MelanieGiles]

Hi stresshead

Given your changes in circumstances you have experienced over the last year, I am not suprised that you are unable to afford your ongoing IVA payments - and feel that you have a good chance of having a variation accepted.

As you have agreed to a 4th year revaluation and equity release provision, the most sensible way of offering a lump sum to your creditors woul dbe by way of re-mortgage, but you woul dneed to check with a broker to see if your could raise the amount suggested by your IP.

If you can raise the money, the variation ought to be a fairly simple process, and will bring an end the stress you are currently suffering from. Put your faith in your IP as they seem to know what they are doing, and so long as you are offering the very best you can afford to do, there should be no worried on the day of the meeting.

Good luck and let us know how you get on.

[stresshead]

thanks for the advice...
obviously we cannot keep paying the 390 per month due to our losses and new expenses..what worries me how ever is will they rather make us bankrupt and we lose our house..because of the four year clause when they know we would be able to repay a big chunck back,im so confused...i got no problem in paying back as much as we can we got our selves in this mess in the first place but the iva is more than likley to fail if we dont go for a f&f and nobody will end up any better off..will the creditors see my point..
thanks joanne

[MelanieGiles]

Joanne

No-one would want to see you bankrupt for the sake of it - neither your IP or the creditors. As your IP has already suggested a settlement figure to you, I feel it would be highly unlikely that this would result in bankruptcy proceedings, and with your IP's recommendation to the proposed variation, creditors will certainly take notice of your offer.

[stresshead]

you mention speaking to a brooker can you recomend anyone if not how do i go about finding one...also if we remorgage what are the monthly repayments likely to be on say on a £63,000 mortgage obviously we wouldnt get such a great rate on it...just an estimate
thanks joanne

[MelanieGiles]

I can recommend both Andrew Graveson or Tony Parsons who are both regular contributors to the forum. You can find their details under the experts pages.