Advice Please

[BetweenRockandHardPlace]

Hi

We were considering a lump sum IVA for both myself & my wife - the brief circumstances are as follows - I had a business which has now failed and I am in the process of obtaining employment (Had a couple of offers - both start in March). The income I will be drawing is substantially less than I'm used to and our joint incomes will not cover our existing mortgage and living expenses let alone any unsecured debts, so we need to reorganise.

We both jointly own our home - has equity in excess of our unsecured debts - so we are technically solvent, which I understand excludes us from the IVA process.

We plan to sell the house and trade down and wanted an arrangement to pay off the creditors and start again.

As IVA is out, is there a process out there that wil enable us to get the creditors off our backs until the house is sold?

Thanks - any suggestions ?

[freelili]

Hello and welcome

It may be possible to propose a lump sum IVA which would protect you from the hassle of creditors, I am not sure about this though, my situation is that I have unsecured debts and am due an inheritance which may make me techincally solvent and I have been advised to take this lump sum IVA route, propsing to settle within a 12 month period. The only other option is to propose token payments until you can sort it all out. The creditors may be happy with token payments on a temporary basis with a view to a lump sum settlement or you could use a third party such as payplan to propose this for you. I am sure one of the experts will reply to you soon and give you better advice than I can.

Good luck for now

LILY

[freelili]

I am waiting for my mothers house to be sold, I have entered a temp DMP, I need to sort my head out after my mothers sudden death. You could try phoning a few companies just to see if a lump sum IVA is possible and I would suggest ring a couple of companies from this site, particularly Thomas Charles, (I got my own lump sum IVA suggestion from them). I am only paying 5 per month to my creditors and all but one 'die hard' creditor have been fine with it.

LILY

[BetweenRockandHardPlace]

Thanks guys !!

[MelanieGiles]

Hi there

You could put forward an IVA - based upon 100p in the £, but on top of this you would have to pay IP fees in the region of £5,000 to £6,000.

If you do a DMP instead - or do nothing, but inform creditors that they will be repaid once your house has sold, then the creditors will charge you ongoing interest in the meantime.

If you feel that in the time it takes to sell your property that ongoing interest will accrue at a rate higher than the IP fees in an IVA, then an IVA may be more favourable for you in terms of eventual cash and peace of mind. Weigh up the options carefully.

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

[jamesfalla]

Hi

I agree with Melanie here. You could consider a lump sum IVA but you would repay 100% of your debt + IP fees. In light of this, probably the best thing to do is a Debt Management Plan for 6 - 12 months. This should get the creditors off your back and get you time to sell the house.

During the DMP negotiation, if you let the creditors know you are going to sell the house and then repay them in full once you have done this, they should view your DMP proposal favourably.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. My book, "IVA, Bankruptcy and Other Debt Solutions" was published in 2006. I have made numerous TV and radio appearances including BBC1 News, BBC News 24, Radio 4 and Wake up to Money.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

[BetweenRockandHardPlace]

Thanks for the info