IVA ACCEPTED TODAY OH MY GOD!

[sarah1975uk]

you have equity of approximately £2k before costs of sale - and that would be insufficient for the Official Reciever to apply for a possession and sale order, especially as you have three children.

Why did you say especially as i have 3 children?

Thank you for eveyone's help & Support xx

[MelanieGiles]

You ought to effect a legal transfer of your interest in the former matrimonial home to your ex-husband - and get your name off the mortgage, as if he defaults with the payments at all you will be equally liable.

I mention you children, as Courts are very reluctant to make possession and sale orders wheret there are children of 18 or less still residing in the property. But as you have little equity, and someone to purchase this from the Official Receiver, there is really little to worry about. Are you sure that your house has not got up in value since it was purchased?

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

[sarah1975uk]

i have thought about the other hosue and enquired to the mortgage company about taking my name off the mortgage, they said my husnband would have to re mortgage so the interest rate would go up making it unafordable for him really he is currently on a dmp and possibly considering br himself anyway.

with regard to my house im not sure what the value of it is currently. It needs quite a bit of work on it so cant really compare to houseses around here that are selling. Ive done a search on nethouseprices.com and house sold on my street in Jan 07 for £96k but assume by the price sold that the hosue was in a lot better condition than mine.

Thank you for eveyone's help & Support xx

[sarah1975uk]

Just a thought and not sure if im allowed. If i took a secured loan out now for home improvements that took me up to max i can borrow at the moment this would make equity zero can i do this whilst thinking whether to go br? or when or if i went br would the official receiver force me to sell saying id planned the safeguard of my house? Just thinking aloud really businesses and wealthy people juggle to protect their assets all the time sucessfully.

Thank you for eveyone's help & Support xx

[MelanieGiles]

There is nothing stopping you taking out a secured loan, but what do you intend to do with the money? You actually have very little equity in your property at the moment, I really can't see the point, when you have already said that you have a funder available to assist with the purchase of your beneficial interest.

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

[sarah1975uk]

There is nothing stopping you taking out a secured loan, but what do you intend to do with the money? You actually have very little equity in your property at the moment, I really can't see the point, when you have already said that you have a funder available to assist with the purchase of your beneficial interest.

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

Morning melanie xx The reason for my thought about taking a secured loan was in the instance when official receiver values the house upon bankruptcy and he felt there was equity in the house. that being the case where there could be for example be 10k equity then that would put me beyond the graps of someone buying my beneficial interest. The secured loan would be taken out before bankruptcy after bankruptcy the money would be paid back to the finance company to clear the loan. Other scenario is that the surveyor when i brought the house valued the house at £78k last year but presume that the value is purely for the purpose of proving to the mortgage company that the house is worth what i paid not the acutal market value? if i could use the surveyor value then that would allow family member to buy beneficial interest that would be as you said about £2k, if the official receiver needed up to date value could i not get say 2 estate agents to value at the £78k at todays prices? Sorry to go on but im trying to think of everything here to safeguard and arm with all the facts before i make my decision.

Thank you for eveyone's help & Support xx

[scaredkez]

sarah even when you get your own valuations the OR does whats called a drive by valuation and they use the figures on that which is based on house prices in the area.

kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[sarah1975uk]

House prices here that have sold arent always true reflection as its a council estate and lower values and where some people buy their home off the council.

Thank you for eveyone's help & Support xx

[scaredkez]

same as where i live, but this is what the OR has done with me, we got an estate agent to value as quick sale for £120k the OR informed me that they had done a drive by and the value was £130k and that was what they were working on, they won't get that for my house but that is what he is using for my BI, even tho someone down the road has just bought their house off the council for £78k yet in the past month 3 houses have sold for between £125k - £130k, all i am saying is look at every scenario so you don't get surprised, as one of the other things that happened to me was i was told all the way through that i would be allowed a provision for a car, but the OR said no, its just horrible when you think you have worked on every worst case scenario and then something you never thought about comes up and bites you, in regards to the secured loan, i don't personally think the OR would be too pleased as they look at all your financial interests and if you knew you were already struggling before taking out a secured loan they may not be too happy about it, i know you are trying to think of everyway you can keep your home, believe me i have been there, and still in limbo, but at the end of the day its bricks and mortar and the main thing is you still have your family and thats how i have got myself through this, i just want you to be prepared for anything that may crop up, i really do know what you are going through.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[sarah1975uk]

Thank you so much kerri for your help and too melanie too. Its so scary at the moment, ive tried to think of everything and my head is spinning and feel sick with all the worry. I suppose anything worth fighting for is worth it in the end. Just goign back a bit on this conversation. In an iva when you have a clause "equity release in the 4th year" can they force me to remortgage? or is it a case that i can say now i will consider it and try? So in 4 years time say interest rates were sky high or i felt i didnt want to commit to getting into more debt my re mortgaging? can i be forced too? surely the clause means that i will try.

Thank you for eveyone's help & Support xx

[scaredkez]

from what i have read on here sarah as i too was worried about that clause in my iva, and that we didn't realistically earn enough for the lender to agree a higher morgage, i believe and i am sure someone will correct me if i am wrong, that they will extend the iva for a further 12 months if a remortgage is not an option.

you could also hope that the property goes down in price, because of the high interest rates, just a thought!!

kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[sarah1975uk]

ahh didnt think of that what an interesting idea. I wonder if they would allow to extend the iva for the further 12 months and then allow me not to include the house in the iva?

Thank you for eveyone's help & Support xx

[sarah1975uk]

i never thought id hear myself say that i wish my house was worth less than i wanted it to be lol.

Thank you for eveyone's help & Support xx

[thebear29uk]

Hi Sarah

Firstly I'd like to say don't feel a failure. Most of the people on here (Experts apart) have been or are in the same position as you. Nobody held a gun to our heads and made us spend the money but neither did they make it difficult to get more when we were already drowning in debt. Yesterday I read of somebody living with his parents and earning £1100 a month having debts of over £100K. What lending criteria allows that situation to arise?

With regard to your situation I would get an estate agent to come round and value your property to give you a feel for whether your house has increased in value. My concern for you in an IVA is that 5 or 6 years living within a very tight budget with 3 small children will be incredibly difficult. If you try for an extra year instead of an equity release that means that at the end of the IVA your children will be 14 and 13. Quite demanding ages perhaps? You won't be able to have any holidays probably during that time.

I commend you for wanting to do the right thing by your creditors but you could find yourself 2 years in to an IVA and struggling too much and having to then start the BR process. Most of what you have paid in would be absorbed by IP fees so you may still have to make payments for 3 years to the OR.

By going BR now you may pay the OR something but not as much as in the IVA. You will have more funds available for emergencies and the odd treat. You can start re-living your life as a family.

And one final point. You offered your creditors a return of 40p in the pound. Now I'm not sure if your IP hasn't done their job properly by presenting the facts accurately, or the creditors were in an unforgiving mood that day, but when an increase of 30% is requested something is not right. Maybe your IP should now be telling the creditors the original proposal is a take it or leave it and the alternative is BR. 40p in the £ is so much better than what they will recieve from the OR.

Regards

Dave

[sarah1975uk]

Thank you Dave your input is much appreciated xx

The take it or leave it is exactly what ive instructed the ip to tell the creditors monday. They either accept the proposal or they dont if they dont then Bankruptcy is my next step as far as they are concerned and they get nothing.

Thank you for eveyone's help & Support xx