Secured Loan

[wen]

Hi everyone,

My husband and I are currently looking at all our options. One question I have is we have a 95% mortgage, and it looks like we might have to give out house back as we can no longer afford the mortgage payments. We also have a secured loan on our house. If we were to give our house back and our mortgage money were to sell it, and there was not enough money to repay the secured loan, could the balance of this loan go into an IVA as it would no longer be secured or not?

[Adam Davies]

Hi
Yes this is very possible as long as it is not your only unsecured debt.
Have you considered bankruptcy ? As you are in negative equity you could continue in your house by getting a third party to buy the official receivers interest in your house for a nominal £1 plus costs.You would need to maintain both the mortgage and unsecured payments but your unsecured debts would be written off.You may also have to make payments for three years based on your disposible income
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[wen]

If only it was our only unsecured debt!!

We are considering bankruptcy and this may well be our only choice, but just looking at all the possible options at the moment.

Our house has probably got another 6k of equity in, but we cannot afford our repayments of the mortgage and it is mortgaged 95%+ so it is unlikely in my view that the mortgage company will get a full value price for it, and will probably leave no money left for the secured loan.

[MelanieGiles]

Wen

Can you provide us with a list of your other unsecured debts, together with some idea of your disposable income, so that we can advise further.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[wen]

Wen

Can you provide us with a list of your other unsecured debts, together with some idea of your disposable income, so that we can advise further.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

How do I email you direct Melanie?

[MelanieGiles]

Pop onto my website using the link above, and go to the page which says to ask me a question. I will be happy to respond to this in due course.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[wen]

Thanks Melanie... we are in the process of putting our debts together (it's scary!!), so when we know where we are at, i'll send you an email.