Hi Michael, I wish i had spoken to you before i entered into an IVA especially in view of what you said about always advising clients to seek a remortgage - had that been suggested i would likely have followed that road instead of an IVA. Debts of 48,000 savings etc cashed in and paid into IVA meant remaining debt to repay was around 20,000 and with 60,000 equity and a current mortgage of less than 50% of the value of the house i may well have been able to remortgage to raise the money owed but sadly this option was never suggested and i never thought of it myself. Oh well - too late now but at least if i ever know of anyone thinking about entering into an IVA then i know of at least 2 great IPs on this site who i would recommend they talk to. Many of us entering into an IVA don't get the benefit of good advice as we were never given the opportunity to speak to an actual IP before making our decision.
IVA started Jan 2012
Last payment made June 2014 @100p
Completion certificate received Sept 2014
It is a shame that advice is not uniform throughout the industry. We send a document outlining all the options to every client explaining the pros and cons of each. It is possble Urbanfox that you may not have qualified for a remortgage at the time of the meeting but it was an option that should have been at least looked at.
I doubt you would have been able to get a remortgage in 2012, urban fox, as the level of your unsecured creditors would have been taken into account. But the option should certainly have been explored, as formal insolvency proceedings should always be a last resort.
I tried to remortgage in 2011 and was declined as I had too much personal debt. so catch 22
IVA accepted 31.05.11 and 2 reviews DONE!!! Wow,nearly approaching my third. can't believe how time has flown!
December 2015 - made a one off payment and made a settlement of the IVA!! recieved certificate in May. - all completd and now I can get on with my life
I thought insolvency was for people who had liabilities greater than assets? Surely with £20k debts and £60k equity you are not insolvent? Hats off to Melanie, David, Michael and all who deal in this area. It certainly seems very confusing to me!
It is often misunderstood relieved33, but the true test of insolvency is an inability to repay debts as they fall due. I have acted for numerous people in the past, and still do, who have more assets than liabilities - but when equity in property is tied up, it can be difficult to release to repay your creditors.
