Some advice please.........

[bigmumma]

Hi everyone,
Just after a bit of advice please, this is our situation (in a nutshell).....

*Joint income of 2000per month
*Debt of 53k - 13 creditors in total
*We have 69k equity in our home

We will be remortgaging at the end of the month and although we have enough equity in our home to clear our debts we would not be able to afford the monthly mortgage payments if we did so its not an option.
We are thinking of going down the IVA road but would like to do a F&F rather than a 5 year plan. This is because we don't have very much spare money each month (2 young children to pay for !) but we could in theory remortgage and get hold of approx £15k and be able to afford the mortgage payment. Does anyone know if that would be an acceptable amount to offer on an IVA and if the F&F would be a good option for us, Alternatively, if we can't do a F&F maybe we could put that £15k into an account to pay the monthly payments from for 5 years - I suppose at least that way we could get some interest on it !!

Any advice would be much appreciated !

Thanks Guys
x

[Welsh Boy]

Hello bigmumma

Welcome to the forum, I don`t think (though I may be wrong) that you are insolvent.

The equity in your property would enable you to clear off your outstanding debt, so possibly an IVA is not an option.

Why don`t you contact the person who is remortgaging you and ask them to restructure the mortgage to get the most cost effective product in the interim.

I am sure one of the IP`s will come along and offer advice on the IVA side of things.Tony

[bigmumma]

Thanks Tony, but as I said we CAN NOT afford the monthly mortgage repayment if we were to pay off the whole debt. Also, it would make us Adverse borrowers and would affect our future mortgage applications. Though an IVA woudl be best road to go down..

[size5]

As your assets outstrip your liabilities, creditors would get more from you by forcing bankruptcy rather than agreeing to an IVA.

Have you investigated an interest only remo?

It may well be that a DMP to the amount you can afford to pay monthly for a year or two then followed by eauity release to fund full and final settlements of the debts (hopefully at a significant discount)would be the most sensible way forward for you.

Good luck.

[bigmumma]

Thanks for your help....

We currently have an interest only mortgage which is still a lot to find each month. We can not lose our home whatever happens - can they really FORCE you into bankrupcy ? We have 2 younf children to provide a stable home for and really can't lose our roof. I thought that a F&F for at least 25% of the debt would be acceptable ???

[size5]

They are unlikely to force bankruptcy as it stands, especially if you are currently up to date with your debts but an IVA is out of the question simply because by bankrupting you there would be more money for them than by taking a full and final. Again, a DMP would at the very least stop your debts getting any worse by cutting off your credit and should bring the debts down in the meantime.
Later on, full and final settlements can be negotiated to honour the debts at a discount.
Last week, for example, I arranged clearance of a £15k balance for £6k. This shouldn't be used as a rule of thumb of course, but it does show what can be done.

[bigmumma]

Thank you - don't know too much about DMP's. I spoke to the CCCS and they are the ones who suggested an IVA as they said we would have to have a DMP for about 20 years - what would your advice be ? We need to clear £53k debt and can afford to add another £15k to mortgage to offer as payment, but no more. If we offered any more than that we woudl end up back at square one again. Do you know of any good DMP companies and how do they differ from IVA's ???
sorry to sound thick !!!

[Welsh Boy]

Best advice I could give you would be to contact Andrew Graveson who posts on this site as Brightoak, he is very knowledgable with regard to DMP`s. Tony

[bigmumma]

Thank you, will do x

[Skippy]

Did the CCCS know how much equity you have in your home? I can't believe that they suggested an IVA when you're not actually insolvent!