Any help would be very welcome indeed!

[ceanothus]

Where do I begin? I have a house which has been used to generate a deposit on the house I now live in. The original house now has a mortgage which is worth - approx - £100,000 more than the value of the house! I rent the house for a sum which is approximately half of what I pay in interest only payments. My business has suffered terribly over the last 12 months and having used up almost all my savings I am now living - mostly - on credit. I haven't defaulted on any of my commitments - yet - but it won't be long before I do! My earnings are very variable (I am self employed) and I have no other income. I am divorced with one child to care for. Where do I go from here?? I've just found this site and read some wonderful posts offering support to people going through IVAs - without judgement, which is refreshing - and I wonder if this is where I need to go??? Any help/advice would be welcome! Thanks

[kallis3]

Hi and welcome

It certainly sounds as though you need some help even if you are keeping up with your commitments. You have come to the right place for that, and for support.

I'm not sure what the position is with regards to your houses and your business, but I do know that one of the experts will be along to give advice later.

You could visit wwww.iva.com for a list of companies and reviews. Give one or two a ring and you will receive free and impartial advice as to all the options open to you and the best way forward for your circumstances. One or two of the companies post on here and get excellent reviews.

[ceanothus]

Hello Kallis and thank you so much for your reply! I have been awake and reading through this site since about 3.30 this morning - ANOTHER sleepless night!! I was truly amazed to see that my post had been read, let alone responded to - and in so positive a manner. I'm feeling more positive already!
Thank you

[ceanothus]

Oops - I'm sorry - in my eagerness to reply I failed to notice that your name is Jan - not Kallis!

Apologies

[kallis3]

I'm pleased to hear it!

I'm just off to work unforunately (and on a sunny Saturday as well!)

You will get a response from someone who knows far more about the property and business market than I do.

By the time I come home this evening I'm sure you will be in an even more positive frame of mind!

[Michael Peoples]

Hi and welcome from me too. It does sound like you need to speak to someone and have your options explained. If the rental property is in negative equity and the rent is less than the mortgage it does not seem logical to keep it. You could surrender the property to the lender and the shortfall would be included in any IVA or bankruptcy.

As to the business, you need to see first of all if it is actually making money. If so then it is necessary to prioritise your spending. The mortgage on your home may well be the most important thing to pay followed by food, clothes, heat, light, council tax etc. Any monies left would form the basis of a proposal to creditors.

If the business is viable an IVA is a good option as it allows all the previous liabilities including any Crown debts to be effectively hived off into a separate pot. The business would then have a chance to grow without being strangled by debt. You would need to make allowances for all future Crown payments and all returns must be submitted even though you do not have the funds to pay them.

Most IP firms offer free advice but ensure whoever you speak to is experienced in dealing with the self employed. Good luck.

[ceanothus]

Thank you Michael for your reply. You are right, I need to discuss the details with someone so I can arrive at a sensible solution. Soon! I really have no idea which might be the best route and, to be frank, have preferred to struggle on (my commitments, my responsibility, you know how it goes!) but perhaps I have to acknowledge the effect of the double whammy - credit crisis reduces value of property; increased debt leads to less risk and businesses cut their budgets in the area my business operates in - with immediate effect!!

I will follow your advice and make contact with someone this week.

Hope you have a lovely weekend - it looks like the weather might be kind to us over the Bank holiday!

Regards

[MelanieGiles]

Hi there

I concur with the other posters, in that you do need to seek professional assistance to deal with your current financial difficulties.

Admittance of the problem goes a long way to get the process started, but an insolvency practitioner can help you to then find the right solution to fix things permanently. There may be some difficult decisions to make along your journey, but with committment to sort things out, and a good IP at your shoulder, this could all be history in a couple of months.

Good luck in your search, and stick around on the forum where you will find much guidance and support from professionals and fellow experts alike.

[ceanothus]

Thank you for your kind reply. I am quite sure now that I will make some enquiries this week to see who can help me deal with the issues facing me now.

I suppose till now I have always adopted a positive (something will come along/ostrich??? - possibly) approach. The problems haven't been caused by wilful neglect or irresponsibility and I take my responsibilities seriously - as I say, in a financial context both personally and professionally, I am dealing with the consequences of a 'double whammy'!!

I am much encouraged by reading both sides of the experience on this site and I shall return to keep you appraised of my developments!

Thank you all so much!

[MelanieGiles]

With that sort of commitment, I am sure that you will find the right solution. Best of luck.

[kallis3]

Good luck from me as well, and I look forward to hearing from you when you have made some enquiries.

Don't forget that there is usually someone here 24/7 to give advice and support.

Some of us don't sleep and the rest of us have to get up early for work!

[ceanothus]

You are terrific!

So much support and encouragement from people I have never met!! I am amazed and delighted - a whole new world has opened up for me!

I actually slept last night - wonderful! And, yesterday I met with a friend and told her about the possibility of facing this type of solution to my finances! So - I'm on my way - I'm so looking forward to being able to arrange a couple of appointments next week to get some facts which will help me arrive at the best solution for my situation.

Thank you - again!!

[Julie]

Glad you managed to get some sleep....you'll feel so much better when you have decided on the best route for you.

Contact a few companies before making the decision....the professionals that post on here come highly recommended

xx

[ceanothus]

[:D][:D]

I am SO impressed with the responses I have had to the initial post I made yesterday morning - I really didn't expect it to be picked up, let alone responded to! I do feel quite flattered - I hope that's not too cheesy!!!!!!

Can I ask - what do the descriptions under each persons name mean? I understand that IP means Insolvency Practitioner (if I'm right??) but what does 'moderator' or 'expert' mean??

Thank you all - hugs to everyone!!

[kallis3]

Hi,

You are right with IP. The experts are those poster who have been around a while and are able to give debt advice and support but are usually in, or have been in, and IVA, Bankruptcy or Debt Management.

There are two moderators on the site, which is myelf and Skippy13. We are able to delete advertising posts (we do get them, and it's not allowed on here)and posts from non genuine posters (and we get those as well) who are hell bent on disrupting the site.

We will always pick up posts, even if we can't always answer them just so that you know you have been seen and someone with more expertise will be along to answer your question.