cannot keep up with the repayments

[gth]

Hi,
I am around £30000 in debt and cannot keep up with the repayments of £1200 or more a month.Another big worry is that my name is on a house belonging to my parents which I do not own, would this be taken into account if I applied for a IVA as my asset and how would it affect them.I`m self employed back living with my parents after splitting up and they do not know my situation

[Sadsack]

Hi gth and welcome to the forum

You need to give more information regarding the house. Is your name on the mortgage and do you contribute toward it? If you are considering entering into an IVA, it is only unsecured debt ie credit cards, store cards, unsecured loans which will be taken into account.

Sue

[gth]

Hi Sue,
Thanks for replying.
The house is paid for ,but is in no condition to live in as renevation was started but still needs a lot doing to it as there`s no kitchen,bathroom ceilings are down upstairs and walls have been taken out.I have made no contribution to it at all.

gth

[Sadsack]

Hi gth
As an IVA is for unsecured debts only - they have to be over £15k and more than 3 creditors - you have a chance of entering into one. The house, as far as I understand, is secured and therefore cannot be entered into the IVA. If you consult an IVA company, there is one on here that comes highly recommended, they will give you all the information that you require. Perhaps it would be best if you posted your creditor details and as much information as you can, they will help you.
There is one thing that has come to mind tho', although the property does not belong to you, your name is on the property and the creditors may request an equity release at some stage of the IVA. There is a thread on this forum which shows that in some cases, property is excluded from the IVA in terms of equity release, and the term of the IVA is extended for a further year.

Hope this helps

Sue

Ho Hum! Think I'll bang my drum!

[MelanieGiles]

Hi gth

Can you explain to me exactly how you have developed an interest in your parents house. This is a key factor in the type of advice that I can give you,and may well be deemed to be an asset which the creditors will require to be realised.

Notwithstanding this factor, you will need to be able to offer payments of at least £250 per month to make an IVA attractive to your creditors, and as you are self-employed an insolvency practitioner will need to see your historical accounts and future trading projections to assess whether you have a viable proposition.



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

[gth]

Hi,
The house was originally my grandparents and was transfered into my name in 1999 when the original plan was for myself and brother to live in.As work was needed to be done on it we didnt,although we did eventually make a effort a couple of years back which leaves the house in the state it is now.We than branched out and had families and i lived in rented accommodation and my brother is now buying a house.I have not contributed to the house regarding any money and my father pay`s any bills, council tax etc.
How would this effect my application for a IVA if it is deemed as a asset?
Could the house be transfered to my brother?who has put some money into it.

Thanks for any replies,ght

[gth]

Well it doesn`t look like any one can help[xx(]

[aguise]

Hi gth
I dont understand the property thing too well but if the house is not in use then would it not help to sell and use some of the money to pay debts or even as a full and final offer to an iva, obviously depends on if the house equity is yours or has to be split amongst family.

Ang

[MelanieGiles]

Sorry gth - I didn't realise your post had not been answered.

Can you be more specific as to whose names the property is actually in? If there are four owners - your parents, yourself and your brother, then you have a 25% interest, which would need to be taken into consideration within any IVA proposal you decided to put forward.

Can you also confirm the property's value and the amount outstanding on any mortgage, together details of your disposable income (before repayments to unsecured creditors).

I promise one of the experts will definately reply this time!

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