Do I include the amount of mortgage I owe

[ecl]

Do I include the amount of mortgage I owe when calculating total debt

[Sadsack]

Hi ecl

Your mortgage is a secured debt therefore will not form part of the IVA. What you need to disclose is your mortgage payment and any other household expenditure when proposing your IVA. An IVA is for unsecured debt only - credit cards, store cards and unsecured loans. If you have an HP agreement on a car for instance and you have not long to pay on it, you may be able to keep the car depending on its worth, continue to pay the HP and when that has completed, those payments will be entered into the IVA to allow your creditors to achieve the best return.

Hope this helps

Sue

[iva experts]

Hello Ecl and Welcome to the Forum,

The answer is no, you do not include your mortgage amount when you are calculating your total debt.

The debt reflected in an IVA proposal is all unsecured debt (credit cards, loans etc). Your mortgage amount would be needed to determine if you have any equity that can be released within the duration of the IVA.

What is your estimated unsecured debt amount? Do you have any equity you can release?

Hope this information is of use

Regards. IVA Experts

[Oliver]

No. You only include unsecured debt in your IVA and will need to include a provision to continue paying your mortgage when working out your income and expenditure. The mortgage is secured against your home and therefore if this is not paid the lender will potential have the right to repossess your home.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp