i am in an iva which i am finding it hard to pay

[jim_h]

i am in an iva which i am finding it hard to pay i have tried to remortage but have had no luck due to my advers credit my house is worth 142ooo i have the option of to sell and rent back my property which would free up a lot more money do you think my creaditors would agree to this as i am danger of having my house repossed due to mortage arrears and being made bankrupt will mean i will lose my home as there very little equity in my house

[pm.e]

Hello,

I am in a similiar boat, Im in a IVA but simply cannot afford the repayments caused by the company that put me in it.

Couple of questions first:
Is your property jointly owned?
Is there any charging orders?
How much equity do you have?

Any variations to the IVA would have to be approved by the IP in any event.

My understanding is that as long as you keep paying the mortgages, you can stay in the home, although its more complicated that just that.

You must try to get back on track with the mortagage.

[MelanieGiles]

Hi jim h and welcome to the forum

Can I ask how much your current mortgage is? It is not impossible to re-mortgage whilst you are in an IVA, depending on the level of equity you have. You will probably need to consult a mortgage broker who specialises in adverse credit mortgages.

Can you post a little more about your IVA - duration, number of payments made, level of monthly contributions, what has caused your current difficutlies, in order that we can assist further. I would only use sale and rent back as a very last resort.

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

[jim_h]

my current mortage payment including secured loans is £1160 i have made 6 payments they asked fo 216 amonth my outgings are 2164 and itake home £1980 i am two months behind with my payments on mortage have tried to remortage no luck very little equity in house i owe£135000 on house if i soldand renting back would free up 400 best price if sold on open market 14200 less fees if isell rent back can afford iva dont want to go bankrupt would lose house if i sell house pay what i owe on mortage rent back will be much better off what do you suggest are creditors likely to make me bankrupt i was asked to sign something about a charge on my property but havenot done as yet i am getting no cash sum from the sell only make me better off i have no luck with remortages

[MelanieGiles]

Ooh! Your mortgage payments are very high compared to your income. I am actually suprised that creditors accepted that in the first place. And with a mortgage of £135k against a property worth £142k, there is no scope for remortgaging.

If you sell and rent back you are going to lose your house anyway, but if this gets you a cheaper payment - I assume the rent will be in the region of £760 per month, then this will get your IVA back on track. Do remember that any saving will increase your IVA payments, although I am sure that your IP will encourage you to review all of your expenditure again especially as you are struggling at present.

How much do you actually owe to creditors?

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

[jim_h]

creditors listed on the statement of affairs totalled £19986 creditors claims logged to date £13159 there are 5 creditors on thestatement of affars who have not made a formal claim not sure what thismeans

[MelanieGiles]

So you have a relatively low level of debt, and low monthly disposable income. Given the level of your equity in the property, I am suprised that an IVA was suggested to you to be frank.

If you were to sell your property - either on the sale and leaseback option or a straight sale and new rental agreement elsewhere, the money that you would be saving would easily enable you to repay your debts under normal contractual terms. But with a sale and leaseback option, you may probably only be offered 80% of the value of your property, so this will not even cover the current mortgage.

A straight sale will give you enough money to relocate and pay a chunk off your creditors, leaving you with affordable repayments. I think that you could be debt free within three years.

Is your Supervisor saying that he will make you bankrupt due to your default with the IVA?

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

[jim_h]

donot know as not heardyet only just sent of letter they said it is a crime to not infom them of the sell is it up to the creditors or supervisor if they make me bankrupt sorry to keep on but im cocerned of the outcome

[MelanieGiles]

The terms of your proposal will determine whether the supervisor has to petition for your bankruptcy or not. Is your property inclided in the proposal - ie is there a fourth or final year equity release provision?

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

[pm.e]

Hi,

Just a thought, is your mortgage repayment?

Perhaps you might save some money if you change it to interest only?, only until you get yourself sorted?

Dont know if this helps?