Hi, ive spoken of this before regarding my mortgage with nram increasing this month from £710 to £1180 as they will not do interest only mortgage for me after 2 years anymore. I'm nearly 2 years into my iva.
I wrote the begging letter to nram telling my iva would fail and could they please help by possibly extending the mortgage term so the payments could be lowered again. They didn't write back so I rang them and they said a definite no.
I'm burying my head in the sand and just cannot face up to this any more, it feels like its all closing in on us again, just like before we had the iva.
We have about 47k equity in our house. Iva company said full and final would cost us about 8k each, which we cannot raise.
Can anyone advise if they have been in similar situation. I really don't want to go bankrupt as this may affect my nhs job.
Could we sell the house and if so, i would imagine all the profit would go to our creditors? But out of this would we be able to pay deposits etc for a rented house before the monies are handed over, also things like solicitor and estate agents fees? Would we just pay the full and final out of the equity? I would imagine the creditors would want it for the debt which was approx 103k? Would we then be homeless?
If they accepted a payment once the house is sold, would the iva still run for the next 3 years? Or are we then discharged?
I recently couldn't get a £12 p/m mobile phone contract so how would we rent somewhere? So confused, and after looking on here at other post, unsure whether to trust what my iva may advise. Sorry it's long but i'm on overload. Very grateful for any advice thanks.
Littlemom we are hereon the forum to listen to you and to offer encouragement when things get tough.
Have you discussed with your IP a reduction in your monthly payment to counteract the increase in mortgage costs? A full income and expnditure needs to be done so that you can pay onlywat you can afford to your creditors. Your IP does have the abiity to reduce your iva payment by 15% without a formal creditors meeting. If more is needed then they can arrange a meeting to seek approval for a greater reduction.
What I wouldn't do is bury your head....hold your head up high and be proud....you have taken a decision to resolve your debt issues, and your creditors will benefit from this far more than if you went bankrupt.
You would need the permission of your IP to sell your property, and renting maybe an option. You would need to be upfront with any letting agent so that thy can work through any credit checks ....you maybe asked to pay several months upfront.
If you sold our house then in my experience you would be able to retain some for moving costs etc, but the rest depending on the working in your iva may have to be paid in to your iva for the benefit of creditors and a higher return.
I would like to know where the figure of £8k each for a full and fial comes from, unless this is what you have left to pay over the balance of time in your iva?
My suggested route would be request for a full I&E review, seek a reduction in your Iva payments to counteract the increase.
Hope this helps..but please remember it is only my opinion and your IP should be there to support you.
Last edited by luluj on Sun Jan 27, 2013 6:11 am, edited 1 time in total.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
It would be very dangerous for any of us to give you advice on this matter on the forum - as we don't know much about your individual case, and the decisions you are facing are important ones.
Can I recommend that you arrange a meeting with your IP urgently to determine a strategy for the way forward. The consideration of selling your home should not be taken lightly, and it really does need to be a last resort after all other options have been explored.
