Really need some advice as to which way to go.

[teresa.f]

My husband and I have £50000 debt and currently have a debt management with payplan, we are currently looking at moving and dont know which way to turn at the moment, if we move then rent we may have £30000 to pay off the debt, payplan say that the creditors would probably settle for 70% to settle now which would be £35000 so obviously we wouldnt have enough, however if we was to move and buy a new house we would then have about £20000. Would we be best to buy a house and then go in for IVA or should we go for IVA now , if we went for it now then move would the money we gain from moving then pay the IVA off? Really need some advice as to which way to go.

[Adam Davies]

Hi
I would have thought that a 30k lump sum would be acceptable to your creditors.
If you moved and released 20k then you could use this amount and your disposible income to fund an IVA over 5 years.
If you entered an IVA now there would be some type of equity release clause written into your IVA so moving would be more difficult because of this and the fact that to get another mortgage you will need to have paid your IVA for a while[minimum 6 months].
My advice ,on the info that you provide ,is to either sell up and use the equity to offer a full and final settlement or to move now and use the equity and your disposible income to fund an IVA.
It would be worth you taking a second opinion from a company that post on this site.
Good Luck

[teresa.f]

Thankyou for your advice, if i was to sell up and pay the creditors off now, would i be best going through payplan or should i send them all a letter myself and should i mention that i am selling my house to pay them off. Obviously paying them off will mean that we will be going into rented accomodation for a year or 2 how will this affect our credit rating regards to getting a mortgage again, my husband has a ccj as well.

[Adam Davies]

Hi
I would ask payplan to orgnise this for you.
Mortgages are easier to obtain than unsecured loans so as long as you can raise a deposit,probably 10%,then you should have no difficulty in buying again.
Have a think about moving now and using part of your equity to fund an IVA,staying in the housing market could help you,but there again it may fall[we keep hearing this but it never seems to happen]
Whatever you decide please keep posting your questions until you are clear in your own minds.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[teresa.f]

Hi, When you say use the equity to fund an IVA would we have to pay £20000 off the debt then start IVA or do we keep the £20000 to pay for the IVA, sorry if this is a silly question!!

[Adam Davies]

Hi
The 20k would form part of your IVA payments,so to give you an example.
You have debts of 50k
You have a disposible income of £400 per month.
The total that you would pay into your IVA would be 44k[20k lump sum and 60 payments of £400]Less IP fees of approx 8k would leave 36k to be paid to your creditors.This would give them a return of just over 70p in the £1.
Hope this helps



Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[teresa.f]

Hi, thanks again for the info, it sounds like i would be better off paying my creditors off with the £30000 and renting for a couple of years.