Don't know which way to turn please help

[nikki33]

Hi Everybody,
I have just found this forum and really need help. I left my partner a few years ago and am still trying to pay debts that were incurred in my name during the relationship, also I am a director of a limited company which has had 2 very bad years and I have been stupid and lived off credit.
Consequently I now owe aprox 90k in unsecured borrowings and have failed to keep up some of my payments for the past 3 months.
I also have a together mortgage with Northern Rock of which 95%is secured and then a 25% unsecured loan runs along side it. I have not missed a payment on my mortgage.
I really do not want to go bankrupt . Due to my wage from the limited company only being about £1200 net a month at the moment I have taken on another job self employed and got a lodger in my house this means I am now earning an extra £1600 minimum. = £2800 a month.
I have worked out my outgoing including mortgage £1380, utility bills, food, petrol and car costs to be aprox £2150. Do you think I will qualify for an Iva if not what other options do I have? Also what should the costs be for setting up an Iva?
Many many thanks for any advice.
Nikki

[Adam Davies]

Hi
There should be no costs in setting up an IVA.
On paper you have a possible IVA but much more info will be needed from you.
How much is your property worth and how much is your outstanding mortgage[not including the NR unsecured] ?
When you have allowed for your mortgage payments did you include the NR unsecured element,if so this needs to be added to your disposible income.
Finally how do you honestly feel that your business will go in the next five years ?
Regards

[Reviva UK]

something else to remember is that you would need the lodger and extra job ( unless the main job income is going to increase a lot) for he next 5 years. Make sure you are OK about that.

You can enter an IVA as a director of a Ltd company but would need to resign as a director if you wanted to go into Br.

[nikki33]

Hi thankyou for the quick reply.
Yes I have included the whole amount including the together loan.
I am not at home at the moment so I can't lay my hands on a mortgage statement but off the top of my head the fixed amount is £220,000
and an unsecured laoan of £30.
I do however have a seperate loan with Northern rock which has been running for 3.6 years which I have missed 2 payments on . I rang and asked if I could pay a smaller amount for a few months and was turned down. They have now sent me a court claims form and are going for a charge on my house even though I'm in negative equity.
With regards to work, things are picking up we had several companies go into liquidation over a 2 year period which resulted in us losing a total of 55k . We run a promotions agency and had to pay all the girls wages which amounted to 35k even though nothing had come in.
The business does not owe a penny to the bank and we are gradually building are client list back up just being a lot more thorough with credit checks and terms before we take a new client on. So yes I am confident my earnings will go up as the company is growing at a healthy rate and the profit margins are good.

[nikki33]

Sorry thatshould say 30k

[Reviva UK]

Would suggest that you need to move quickly before the loan becomes secured against the house.

You also may have a challenge regarding the voting by the creditors for accepting the IVA as clearly NR have a significant portion of the debt.

In the voting 75% of the debt that votes needs to accept the proposal for it to be accepted. If NR have more than 25% of the debt and vote against the proposal then it could mean the IVA is a no go.

However suggest you make a call 1st thing on Monday to Ian Milington or Melanie Giles and ask for their professional opinion.

If the charging order lands then this is not a good thing. But you have time if you act fast.

[Adam Davies]

Hi
If NR secured their unsecured debt it will reduce your disposible income so please advise as to how much your disposible income will be if you had to maintain full payments on these debts.
Is your house worth less than 220k ?
I'm sure that you are a candidate for a possible IVA.
Regards
Regards

[nikki33]

Thanks for the advice, my house is probably worth 220k at the moment they were going up at about 230 last summer but they seem to be between 210 and 220 0n my road at the moment. If Northern rock managed to get a charge against my house for the 23k I owe on that loan, as long as I keep making my total mortgage payments would the together loan of 30k with them go into the IVA if its approved?

[nikki33]

If that is the case my disposable income would stay about the same as the 23k loan is £293 per month and the unsecured loan part of my mortgage is about £320