just started the process of applying for an iva

[louiseh]

I have just started the process of applying for an iva jointly with my husband. We have debts of around £70,000 inluding
RBS(tesco personal finance) £22,000
HSBC £12,000
MBNA £9000
BARCLAY CARD £6,000
CAPITOL ONE £5000
MORGAN STANLEY £4000
EGG £8000
EMPIRES STORE £4000
Property owners with no equity, also no defaults on any payments so far.
We've been told we could offer 49p in the pound, is this likely to be accepted? Also if the iva is rejected we have been told if we apply for bankruptcy we wouldn't automatically loose oour home because of the equity issue, is this correct?
Thankyou
Concerned

[MelanieGiles]

Hi louise

49p in the £ would appear to offer an acceptable dividend to those creditors so good luck.

In the event of bankruptcy, you would need to address the equity in your property by trying to find someone prepared to buy it - ie a family member or friend. This is because in bankruptcy, all of your assets vest (become owned by) a Trustee, whose job is to sell them and use the money to repay your creditors.

Generally where there is equity of less than £5,000, the Trustee will not pursue the equity.

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