Best Way Forward

[gporter3319]

Hi,our home is worth about £125,000/£130,000, we owe £112,500 on the mortage and have unsecured debt of around £45,000,owed to about 7 creditors, this I beleive means we have no equity in our property.Accuma are currently looking into an IVA for us,but after reading a few different threads on here and the net was wondering about if perhaps B/R would be a better option for us due to the fact of no equity.Am I correct in thinking that we could buy the property back from the O/R for as little as a pound plus costs? and if so would that clear all our debts including mortage or is that wishfull thinking on my part,would we still have a mortage to pay, just clear all the creditors of unsecured debt.Gary

[mikebdomain]

Hi gporter and welcome to the forum I can not advise you about an IVA or BK, but you have the equity issue slightly incorrect.

You have equity in your property (approx £17,000) the unsecured debts do not affect your equity as they are not secured.


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[gporter3319]

The reason I say we have little or no equity is due to the early redemption charges that we would have to pay as the mortage is a little over a year old.

[gporter3319]

Just another thought,can any of our unsecured creditors force us to sell in any way or is it a case of them putting a charge on the property for when and if we did ever sell,or would we just end up with CCJ's

[mikebdomain]

To be honest I would wait for one of the IP experts to come along.

The equity amount you have in your property would be dependant on the ERCs that would be due.

The ways that creditors will come after the debt depends on their chosen methods, they can not force you to sell the house without a charge, even with a charge they are unlikely to get their money if the house is sold due to the lack of equity.

For one of the IP experts to give you any advice, they would need to know more details. e.g. what are the amounts of the debts and who are the creditors? what is your income and outgoings? etc.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Adam Davies]

Hi
I can,t see your early redemption penalties being 17k,so I think that if you went Bankrupt you would lose your house unless someone could buy the equity in it for you.
Wait and see what Accuma come up with as an IVA may be a viable solution for you.
regards

Andy Davie
IVA.co.uk Spokesperson

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