I am now unable to make payments

[mrj]

i have lost my income and now have a irregular income which varies from month to month, i have got 47,ooo pounds in unsecured debt and 186,000 against a property which i currently rent out . the property is worth around 180,000. I am now unable to make payments and as from next month will start to go into arrears with certain loans etc..What should i do, is an IVA the option for me

[MelanieGiles]

Hi mrj

So you have negative equity in your investment property, and £47k of unsecured debt. What you need to do is draw up an income and expenditure account (excluding any repayments to unsecured creditors). The surplus remaining becomes your disposable income, and it may be possible to propose an IVA to your creditors, by offering ongoing monthly payments based upon your disposable income. If you want to post a list of your creditors I can advise further.

Do you also own the property you are living in? If so, what equity do you have in that. Can you also tell us why your income is so irregular now - as that is not necessarily condusive with entering into a disciplined repayment plan with your creditors.

Finally, with regard to the investment property, under an IVA you will need to demonstrate that the rental income is more than the mortgage and any other expenses directly relating to running the property.

I shall look forward to receiving more information shortly.

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