All advice would be very much appreciated!

[flutterby]

Hi,
Just a quick question ... actually who am I kidding! Its a long complicated question that spans the last 15 years, but in short .... I think an IVA is for me having researched online for some time, but I'm not sure if my current living situation will throw a spanner in the works.
My debt is around £50k to 11 creditors, I am a single parent with a 5 year old daughter. I co-mortgage a flat with an ex-partner. The mortgage is less than a year old, and possibly almost in negative equity. I pay half of the mortgage, but currently live with my parents.
I need to move into rented accomodation, my ex can cover the mortgage payments, and my rent is likley to be the same as my current contribution to the mortgage.
I hope that makes some sense.
My combined earnings, maintainance for my daughter and child benefit/child tax credit are approx £1900, realistically my outgoings are £1500 (without the debt repayments which are currently over £1000 a month, and clearly out of control and unsustainable).
Although my bank account info, and council tax is registered at the mortgaged property, all my debt related statements etc are posted to my parents home.
I am mostly concerned about the phonecalls etc coming to my parents home as this will seriously worry my parents.
Is it worth changing my postal address with all my creditors prior to proceeding with an IVA. Or should I contriue to make the usual monthly payments until the IVA has been agreed to avoid the phone calls?
Also, should I move into rented accomodation before persuing the IVA?
Its such a minefield!
All advice would be very much appreciated!

Many thanks.

[AlanO]

Hi Flutterby,

many things going on here - What is the intention with the mortgaged property? If this is going to be sold probably best to do so before looking at a formal arrangement.

Also I would look at securing the rented property before entering into a formal arrangement - that way you are more certain on expenditure.

In the interim I would suggest seeking informal creditors arramngements or a debt management plan. Hopefully suspending interest charges and further collection actions.

With regard to your parents other than the phonecalls there should not be an impact on them provided you do not have a financial relationship with them ie joint bank accounts, borrowings etc.

Hope this helps a bit - but best to talk direct with the experts so they can work through a plan that would be best for you

all the best alan

www.debtdr.co.uk

[MelanieGiles]

That may seem complex at first sight, but it is not really.

I would also look for rented accomodation prior to proposing the IVA, but this does not mean an IP cannot start working for you in the meantime. If your ex-partner is going to take over the mortgage payments, a sale of the property is not essential at any time, and presumably he will want your interest signed over to him as well - which does not cause any problems if it is in negative equity.

You look as if you have the makings of a very workable IVA there, flutterby, so take direct professional advice from an insolvency practitioner and do let us know how you get on.

[jpj]

As Melanie says,you need to ensure you are formally released from the mortgage payments that your ex is taking over. Its no good just letting him pay but not sorting the legal side out properly,as if he looses his job say,and defaults on the payments,the bank will come after you for the money,and it could throw a spanner in your IVA at a later date!

[flutterby]

Thank you so much for all your advice and comments.
Its just so brilliant to be able to 'talk' over these things and put it all into perspective.
I will look at formalising the mortgage situation first. Although I may just have to swallow my pride and stay at my parents until I've got a better grip on my financial situation. I will certainly discuss further with an IP.
I've read so many posts on here, and I know that so many people went through the 'how did I get into this mess' .... but no point looking back.
I have a renewed sense of determination to dig my way out!
Thank you, again.

[aguise]

Hi flutterby.
I am sure you are on your way to sorting it out. Get a good Ip and discuss it with them. You have a great Ip who has answered you above and who would I know give you the best advice.

All the best

Ang

[emma_t]

Hi flutterby

Smetimes it seem that your own situation is so complicated, I thought mine was also for a number of reasons, but it turns out when looked at by a professional they are a lot less complicated that you thought. There is always a solution to debt problems and I would take advice asap as it really does get worse if left..

Have a look on www.iva.com for revies on insolvency practitioners but in my opinion the one who has already answered your post (Melanie) is fantastic and you could do no better than approach her team. It feels like a big step and I was petrified but after the first call was made it was like a weight had been lifted from my shoulders and I had a solution.

Best of luck and stay in touch with the forum as it has helped me no end with advice and support[:)]
Emma x

[mike.s]

Hi flutterby,
You have already taken the biggest step, realising you have a problem and wanting to deal with it. When you are in debt everything can seem hopeless, sleepless nights, panic, no way out, it is horrible. Everyone's situation is different and so everyone's solution can be different, but there will be a solution out there for you. Things will get better but you have to speak to someone and start getting things moving, it will only get worse if you wait, so speak to someone asap. I can personally recommend Melanie and her excellent team. Melanie will go through all of the options open to you, in a very honest and open way, and I promise you will feel much better after you have spoken to her. This forum is wonderful, full of fantastic people who will offer you, help advice and support, so keep posting and let us know how you get on.
All the very best
Mike