If you have equity in the property more than your debts, then technically you are not viewed as insolvent on an assets v liabilities test - notwithstanding that you cannot afford to pay your debts as they fall due.
Northern Rock will always pick up on this sort of things, so I am suprised that an IVA was suggested if they are an influencing creditor. If you wish to avoid selling the property, a DMP might be a better option - but will probably take you a lot longer to pay off than in an IVA.
A DMP does seem a better option at the moment, I hope manage to get things sorted.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
So do you think that B and E are to blame here then?? Our mortgage is £90,000 and the house is worth around £120,000 ish at the moment although there has been not valuation etc. The overall debt is £38,000 and Northern Rock are owed around £12,000 of that?? Should B and E have made us more aware that this could fail.
B and E have argued that if we were to sell and then rent a property, that the rent around here is as much as the mortgage that we are paying and also asked for them to take into account our two children
I thought that you meant that the NR rejection was because you had enough equity in your property to clear the debts in full - clearly this is not the case.
How much were the monthly payments you were offering to creditors?
Was there a provision in your proposal to re-mortgage in the final year?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
