i have a few questions

[simon.a]

i have a few questions, what happens if you have quite a lot of equity in your house but you cannot access it because you are not allowed anymore on your mortgage? If you enter into an iva can you not get any credit anymore for the next five years? Is there any way instead of using an iva that all interest can be stopped on credit cards and you just pay back what you owe now over the next say seven years?

[Skippy]

Hi Simon and welcome to the forum. I cannot answer your question about your mortgage, but one of the experts will be along shortly to help.

Regarding your question about credit, if you are in an IVA you are unable to get credit for the duration without the permission of your supervisor. What you are asking about sounds more like a debt management plan. These can work, but it depends upon the size of your debt, and whether your creditors will be prepared to freeze the interest. Please can you post more details so that one of the experts can advise further - how much you owe, who your creditors are and what your income and outgoings are.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

Hi Simon

With regard to the mortgage, you could borrow up to 90% of the value of your property quite easily. Are you at that level now and, if so, what equity do you have remaining?

You are allowed to have credit during an IVA, but only with the express permission of your Supervisor. This is generally only given for very good reasons, such as the purchase of a replacement car or a re-mortgage for the good and benefit of creditors generally.

It is extremely unlikely that creditors will agree to cease charging you interest under an informal debt repayment plan, but of course this is stopped automatically under IVA proceedings.



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

[Adam Davies]

Simon
If your equity is more than your unsecured debts then you are deemed as being solvent and will not be viable for an IVA.
If your equity is less than your unsecured debts then you may be suitable for an IVA if your income is less than your basic living expenses and minimum unsecured debt repayments.
Under an IVA all interest is stopped and the balance of your debts are written off at the end of it.
You will normally be required to release some of your equity in the final year of your IVA by way of remortgage and if this is not possible because you are unable to remortgage then it is sometimes possible to extend your IVA by a year.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp