My husband and I are about to seperarate and sell our house, from the sale the mortgage and the secured loan will be paid off and there will be no profit from the house. We want to start an IVA for our other unsecured debts and would like to know if we are best waiting till the house is sold or should we start the ball rolling now?
I am sorry that you are going through some difficulties at the moment which is involving the sale of your home.
If you are looking at proposing an IVA, there is no time like the present to start discussions with an insolvency practitioner - who will assist you in gathering up all of the information which is required for that purpose. The process will take between 6 to 8 weeks in any case - by which time your house sale will be further ahead hopefully - but it does not need to take place before the IVA can be presented.
Hi Melanie,
I will contact you over the next few days with a view to have you propose an IVA for me. I just have two more questions if I may ask please? The first being would we need to do an IVA in joint names as the debt is in joint names or can I do it in my own name? Also when the house is sold there would be some left to pay off some of our secured loan but not enough to pay it all off. Would the company accept some of it to be paid off and the rest to be included in the IVA?
Hope this makes sense.
Thanks
Depending on your circumstances, it may be better for you to do completely separate IVAs, rather than mutual and interlocking ones. I presume that you both have debts.
You can include any remaining balance on your secured loan in the IVA as well.
Hi Melanie,
Thanks for your reply. I have just had a valuation on my property which only covers the secured part of my mortgage. The mortgage I have is an off set one which carries an unsecured loan of 23000 on top of the 68000 and 28500 separate secured loan. I am a little confused because I would need to pay off the secured mortgage with the sale of the house and then would I pay whatever is left towards the secured loan then include the rest of that debt in the IVA and then also include the unsecured part of the mortgage in the IVA also?
Hope this makes sense!
Valuations only give you a guide as to what your shortfall will be. Sorry to hear of your separation but get the house sold crystalise what is owing and then give details to your IP together with all information (joint and separate) debts and your income and future expenditure (taking into account Rent etc). Then the IP will give you the most appropriate advice. Without reading the documents regarding the"off set" you refer to not sure whether any surplus against first charge goes against the "off set" one first before other unsecureds.
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.
The balance of any secured lending would rank as an unsecured claim in a subsequent IVA or bankruptcy. You may not need to wait until the house is sold - a provisional amount could be included as a contingent claim - and if the house sale is imminent then your chosen IP ought to be able to make a fairly accurate stab at the amount due - obviously subject to the sale actually proceeding.
Melanie,
I have just completed the IVA enquiry form and hope you can help me!! I feel I am in an impossible position! I just want to ask, re may car finance (it is a loan not HP) if I include that in my IVA will the company GMAC, take my car off me in reponse to me not keeping up with the agreed payments? Also I have applied to Lloyds TSB following advice on the forum fo a basic bank account which allows for salaries to be paid in and direct debits but does not have an overdraft facility. I did this in preparation for the IVA
Thanks
They cannot take your car Pippy if it was bought using an ordinary unsecured loan. This is because that under the Sale of Goods Act 1979, title to the goods passes upon delivery unless the contract of supply states otherwise.
Opening a new account with Lloys TSB sounds a great idea, so long as you have no borrowings with them.
thanks Melanie. I don't have any borrowings with the Lloyds TSB. Glad I have made a right move there! I will wait to hear from you now in response to the IVA enquiry form I have submitted.
You are in such safe hands contacting Melanie, she and her whole team are wonderful and will go through everything with you every step of the way. I am so grateful to her and her staff and nearly a year into my iva my life has changed no end.
You will get there to[:)]
Emma
Be positive & look after yourself, there are more important things in life than debts....
