I took out an IVA in September 2006 for a joint debt of £20000 with ex husband (RBS) and sole Barclaycard debt £10000 (sold to Max Recovery/Eversheds) The IP set it up on 3year basis with no repayments as ex husband had just left and I had no surplus money so it was set against the house increasing in value and either being sold or remortgaged. Unfortunately due to the global problems when the IVA finished the property was valued less than the mortgage. IP wrote to creditors explaining situation and asked if they would close completed as the global issues were not my fault. Whilst RBS agreed, Max Recovery refused and so I have a failed IVA which I now being chased for by RBS but not yet by Max Recovery. I am still in the same position financially as when IVA taken out and I would appreciate some advice as to my best plan of action to sort this out.
IVA
Sorry to hear about the problems that you have had. One of the experts will be able to give much better advice than I can but presumably you do have some surplus income after the mortgage etc has been paid? You could think about speaking to another company to see if a normal repayment IVA could be set up, or you could look at a Debt Management Plan while you sort things out.
Visit www.iva.com for a list of companies and reviews and give one or two a ring, you will receive some free and impartial advice and it may be that someone on there can help you out.
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 great advice from Kallis. If you don't have any surplus at all, you could consider BR. Your house would be at risk if it appreciated into equity over the next two years and a bit. Visiting the link and speaking to a couple of firms will help you decide what feels right for you. Good luck
Given that you owe £30k and your property is in negative equity, I suggest that you look at the option of bankruptcy. The guidelines in terms of properties have recently changed. However, if you have negative or minimal equity, you can still buy back your title and secure your home by making a resonable cash offer.
I assume that you do not have sufficient disposable income to start a normal repayment IVA. As such, the only other alternative is really a debt management plan but this could mean that you are repayingyour debt for many years.
Surely though, unless a third party can buy the interest, the OP wouldn't be able to afford to do so?
I thought the OR was not looking at property until 2 years and 3 months after the date of BR in case the market changed.
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'm not suprised that creditors voted for the IVA to be failed - as you could really not expect it to be successfully concluded without payment of any monies. If there is no equity in the property now, then bankruptcy has to be the best option if you cannot pay anything to creditors.
