is there another way out?????

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Post by clare20 » Sat Mar 29, 2008 8:07 pm
Hi please help!!! i am a director in a ltd company which is about to go into liquidation. me and my husband are both directors and have not been paid a salary since sept 07 therefore it has been difficult kieeping personal debts at bay!!! i have taken some advice and was told that an iva was the best option by selling the family home!! mortgage is 340k value 430k i dont want to have to do this is there another way out?????


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Post by chris.g » Sat Mar 29, 2008 8:19 pm
Hiya Clare and welcome.
There's not many experts about tonight, there's a meeting they are at. Can I just ask how much total debt you have? My understanding of an IVA is that you do not sell your house, you may have to remortgage in the 5th year to raise cash for the creditors though. Maybe someone with a bit more knowledge on IVA's could help out.
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Post by jpj » Sat Mar 29, 2008 8:52 pm
Hi Clare20
Welcome to the forum.
In order to do an IVA you have to have a regular monthly income to service the IVA payments,which you no longer seem to have. will/can the company be resuming paying you a monthly salary.
You may be able to sell the house and offer a full and final IVA with the £100k equity.
It may be worth looking at bankruptcy, but it depends if your business has a resale value too?
If you cant get a salary out the business how are you going to pay a £340k mortgage and an IVA monthly?
It is probably worth posting how much your debts are,then the experts can help you further.


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Post by go_4_broke » Sat Mar 29, 2008 9:12 pm
Hullo Clare

You wouldn't normally sell your house to enter and IVA - usually an IVA is used to prevent this.

Any kind of serious debt solution (except possibly a Debt Management Program) involves realising assets to defray the debt. If you have sufficient equity in the property it might be simpler just to re-mortgage, but as others have said whatever you do you will need to generate the appropriate amount of income to service the arrangement.

Best Regards, Simon
Last edited by go_4_broke on Sat Mar 29, 2008 9:12 pm, edited 1 time in total.
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Post by jpj » Sun Mar 30, 2008 7:14 am
Go 4 broke.. How can clare 20 remortgage when she has personal debt problems,no income for the last 6 months and is stuck in the middle of the credit crunch with mortgage companies being extra stingy with their money!
As you state she will possibly need to realise assets to defray the debt.
Sadly I cant see much of a way out for clare20 without selling her home. A 340k mortgage is a big burden to have round your neck in the present climate without any income!


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Post by MelanieGiles » Sun Mar 30, 2008 3:02 pm
Hello Claire

Before anuone can advise you they will need to know how much you owe to unsecured creditors. Could you confirm this please and also whether you have given any personal guarantees in the company.
Regards, Melanie Giles, Insolvency Practitioner
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