IVA no longer an option

[Dee]

Hi All

Just had my house valued at £125K and so as we owe £124500 then there is a chance that we could keep our house through the bankruptcy. Trying not to get too excited and as we had stopped our payments inorder to save for rent and br fees we would need to quickly get back up to date. This shouldn't be a problem cause we have it in our savings account.

I think we will try and stay put and then file for br and see what happens about the house.

What a rollercoaster!

[Reviva UK]

Hi dee

if that is the plan it is really important to understand the process of purchasing the beneficial interest back and the costs involved.

You can actually make things a lot easier and cleaner for the OR by having the mortgage redemption statements ready, 2 independant estate agent valuations PLUS additional house price information gathered via various web pages. These will confirm what houses have actually sold for over the last 3 - 6 months in yor street / area.

Then if you lay out the proposal clearly and accurately - with supporting docs - it will be fairly easy for the examiner to assess the equity position and decide to sell the BI to your chosen party ( family or friend BUT NOT YOU)

There are fees for this and if it is negative equity it is likely to be 211 plus $1. ( sorry US keyboard)

So as soon as you have gone to court and have a Br number post the file to the OR's office quoting your number and stating that you have a family member who wishes to buy the BI.


Lastly you need to ensure that you can make the mortgage payments for the forseable future so tripple check that you don't have any nasty rises in interest rate etc etc bacause the last thing you need is a new debt AFTER br.

[Dee]

Hi Simon

I have to say I dont fully understand the beneficial interest process so I need to do more research into this. I will get another valuation done asap and file everything ready for the br.

Thanks for the advice I will bear all this in mind. I'll keep you posted.

Thanks
Dee

[MelanieGiles]

Paul's advice is spot on! Do your homework, get the paperwork in order and remember this home is worth fighting for if you can. Push the OR to accept an early deal, and you could find that you get an early discharge to match.

Good luck!

[Dee]

Thanks Melanie

(by the way Angela in your office has left a message for me chasing up my paperwork for the original route of an IVA. I keep forgetting to call her back so would you be able to update her and apologise for me)

I feel you relly have to be fully aware of all of your options at all times. It wasn't until the estate agent had left the house that I realised that because of this latest valuation due to the drop in house prices, we needn't put the house on the market. He had taken photos and I had signed the agreement. I called him on his mobile and he agreed that if we could keep the house then we should try and he would not take any further action. I'll call him tomorrow to ask him to formalise the valuation.

If I hadn't have received all the advise on this forum I certainly wouldn't feel in control and it saddens me to think about how many people out there feel forced into things that they may not have needed to do if only they had access to this forum.

Dee

[MelanieGiles]

Dee

We don't work on forum names in the office, so Angela has probably not picked up on the fact that you are not proceeding with the IVA. Would you mind calling her tomorrow to clarify that please.

[Reviva UK]

Hi dee

if you need a chat about the BI process tomorrow always happy to speak to a forum member. Might just give you some peace of mind.

take care