pay off as much owed as possible

[nico]

Hi,

Found Forum very interesting and enlightening on experiences of IVA's. I am currently going through an IVA application with my Husband with joint unsecured debts of £75,000.
We have our house on the market at the moment - problems with neighbours - and it is our intention to pay off our mortgage and secured loan and rent a property for approximately £245 less per month to put into the IVA above the £200 as an initial amount offered. The equity in the property in minimal and after fees etc would expect to have below £1,000 which will be used towards renting accommodation.
I have realistically estimated that it should take around 5 months for us to sell our house.
Taken the above into account we will be proposing to pay back 42.5p per £ owed + 50% of annual bonuses and overtime.

My first concern is that the majority of our debts are with HSBC bank, whom I gather are very strict when assessing IVA proposals. With us being able to offer the 42.5p in the £ as a return does this sound an acceptable amount? Will it go against us that we have our house on the market which is not yet under offer? Could this cause the IVA to be rejected?

The problem is that we are finding it increasingly difficult to afford the mortgage as well as our debts and know that in the long run an informal debt management would only hold off the inevitability of entering into an IVA. In which time though we will have incurred extra charges and interest.
We just want to get things in place so that we can pay off as much owed as possible and know that there will be an end to this mess in sight.

[catullus]

HSBC have a minimum dividend required rate of 40% so you should comfortably exceed this with the overtime that you will pay in.They'll assess your proposal on its merits but it certainly sounds as though you are taking a realistic view and so I would have thought they will be sympathetic.

The lack of an offer on the house isn't ideal but you can't influence this unless you choose to drop the price and it doesn't sound as though you've got any leeway.

It sounds to me as though you've put your best foot forward , lets hope the creditors see sense!!

[MelanieGiles]

And with the new TiX compliant proposal - perhaps that hurdle rate of 40% will eventually disappear! If I were to be acting as your IP, I would want to ensure that your agents could more or less guarantee a sale within six months, which might require a reduction in asking price to be realistic.

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