I have negative equity and also a reduced income

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andyb98

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Post by andyb98 » Wed Jan 07, 2009 10:55 am
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I have negative equity and also a reduced income which means I can no longer meet my monthly bills (including mortgage repayments).

Are my monthly mortgage payments included in an IVA? And if the mortgage payments are included in the IVA what happens when the IVA ends? Thank you
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MelanieGiles

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Post by MelanieGiles » Wed Jan 07, 2009 11:28 am
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Hi andy and welcome to the forum

Are you actually in an IVA at the moment, or just considering whether one would be a suitable way to deal with your debts?

You must prioritise your mortgage payments, over other payments to creditors as your home is at risk. Secured creditors are only included in IVAs to the extent of any unsecured liability, which you suggest from your comment about negative equity. How much do you feel the negative equity actually is?
Regards, Melanie Giles, Insolvency Practitioner
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kallis3

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Post by kallis3 » Wed Jan 07, 2009 11:29 am
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Hi Andy and welcome.

Your mortgage is only included in an IVA to work out your disposable income. The payment itself has to be funded seperately.

Only unsecured debts are bound by an IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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MelanieGiles

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Post by MelanieGiles » Wed Jan 07, 2009 11:42 am
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But this would include the negative equity sum Jan!
Regards, Melanie Giles, Insolvency Practitioner
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kallis3

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Post by kallis3 » Wed Jan 07, 2009 11:46 am
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Sorry Melanie - I keep forgetting that!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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