looking to get another mortgage

[a.w]

If I was successful in an IVA would I be able to get a Mortage in the next 12 months. I have recently sold a property and will be looking to get another mortgage in the next year or so?

[Storm]

Yes but you will need a 10-15% deposit.

Lenders prefer to see 12-24 months into the IVA but will consider less.

You would of course need to get permission from your IP.

[a.w]

Thanks

Would 'most' lenders do it and also what does IP stand for?

[Oliver]

IP stands for Insolvency Practitioner. The IP is the person who puts forward your IVA proposal to your creditors and then supervises your IVA for its duration.

I would strongly advise that you discuss the viability of this with your Insolvency Practitioner before you agree to commit to an IVA.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[a.w]

OK

Here is an outline, what do you think and what companies can be trusted? Payplan seems to be quite good?

I have 44,000 owing and I think I can afford about £600 a month. This would enable me to live each month with comfort, I am currently living with my parents. My Car is on HP but I have the money to pay that off so my car would not be affected? I would probably be able to save with bonuses as well. Would a Debt Management Plan be better for me? If so does that affect your credit rating as its informal?

[Skippy]

Hi a.w. you will need to put together a list of your income and expenditure (not including payments for unsecured debts), and the figure left over is your disposable income, which you would be expected to pay into your IVA. You would be able to keep paying the HP payments on your car (providing they are not extortionate!) and once the HP payments have finished you would be expected to pay that money into your IVA as well.

Regarding bonuses, most IVA's have a clause in them stating that 50% of all bonues and overtime earned must be paid into the IVA.

The idea of an IVA is that you pay back to your creditors as much as you can afford. You won't be living in luxury for the 5 years, so it is essential that you are realistic with your income and expenditure otherwise the IVA may fail.

I cannot answer your question about a DMP, but one of the experts will be able to do that shortly. If you can post the details of your income and expenditure, and a list of your creditors here they will be able to advise your best course of action.

Onwards and upwards!!!

[a.w]

Income £1600 a month

Expenditure

120 petrol
300 rent
35 phone
30 Car Insurance
60 gym
400 socialising/clothes etc
108 Car Payment (35 Outstanding)(Which I can clear if need be)

[Skippy]

Hello again. I'm not an expert, but I think you would struggle to get creditors to accept those figures. I'm pretty sure they would say no to the gym membership, and the clothing and socialising figure seems very high. My clothing allowance in my IVA was £40 per month, and there was no socialising! With the figures that you have given here, I'm not convinced that you need an IVA, and it might be worth you making some cutbacks and entering into a DMP.

As I said, I am not an expert, and I'm sure someone will be along shortly.

Onwards and upwards!!!

[MelanieGiles]

Hi aw

Skippy is correct. Creditors will not allow £400 for personal expenditure, unless you can break that down into other categories.

I do not understand the point about your car HP. Could you clarify what you mean by 35 outstanding - is this the number of instalments?

And gym membership will probably not be allowed. On the other hand you have not included anything for car maintenance and road tax, and I would always include £50 for miscellaneous expenditure.

You will probably also need to put your house buying plans on hold for the duration of an IVA, as you are unlikely to find anything which would give you a mortgage payments as low as your current rental. Also, how much money was left following your recent house sale?

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

[a.w]

The money from the house sale is what I have for my HP on the car and yes it has 35 payments left

A house purchase will be with my partner so I will not be paying too much more, maybe another 150 on top of what I currently pay.

I have no idea what to do, DMP does not seem a good idea to me as it seems to make alot of people unhappy where as an IVA will sort everyone out and keep everyone in the loop.

I am stuck what to do

[MelanieGiles]

OK - so the option is to pay off your car HP, which will release another £108 into your disposable income. In principle there is no problem with this, but depending upon the value of your car, you may be required to then sell it and replace with a cheaper model - so this may not be a wise move!

How are you intending to fund the deposit required for the house? You will probably need a deposit of between 10% and 15%, given your substantial unsecured liabilities. And you still have that problem with personal expenditure.

My view is that with some careful budgeting over the next few years, you can actually afford to pay off your debts without reverting to an IVA or a DMP.

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

[neverending]

Hi
Having read all your info I do not feel that an IVA will be the correct solution for you and I would question if an iva would be agreed by your creditors given that you could repay your debts in full over 5 years
If you pay off your HP then your disposible income under an IVA would be deemed to be about £800.This would return close to 90% to your creditors.
If you agreed a DMP you could pay back the full debt over approx 5 years.
The problem that you have is your low living expenses at £350 a month and this seems to include food and bills.Once in an IVA you would have great difficulty in your creditors agreeing a house purchase because your living costs will increase dramatically.
My advice would be to try to keep paying your creditors until you are ready to purchase again and then have a look at the options that you have ,alternatevly you could look into a DMP.
regards