taking equity? please help!!!!!!

[crashed]

hi, please help! i have a lot of debt and i'm looking to go for iva. i have filled in iva wizard and it's says i could qualified for iva.
i already spoke to a couple of companies but still very confused about the whole iva thing. i have read about iva, as far as i can understand that it can written off up to 75% of your debt? according to the companies i have spoked too that i need to remorgage and get equity from the house after 4 and 1/2 years with iva. i owed 70gran. i will have to pay 30 gran of it plus over time that i will pay in. in total i will pay off my debt of 56gran over 5 yrs out of 70gran worth of debt.
what i don't understand is why do i need remorgage my house and take equity to give to my creditors when 70% off my debt has been paid over the 5yrs. i thought whatever's left off my credit will be written off. as what i have read and understand.
please can someone help me understand about why taking equity off my house if i get through the process of iva. at the moment i'm very scared loosing the euity of my house that's the only assets i have and i have two children. please help!!!

[MelanieGiles]

Hi there and a late night welcome to the forum!

An IVA, if you decide to proceed down that route, will be based upon the amount you can afford to pay each month and the level of assets you own. So you should not get carried away by the spin of writing off 75% of your debt, but believe that you can pay as much as you can afford over a set time period.

If you are a property owner, you will not be able to avoid the equity release provision as this is now standard procedure, so maybe you ought to look to other options - perhaps a DMP if you are looking for a more flexible approach. Do rememeber that a DMP will not give you the level of legal protection afforded under an IVA, or guarantee that creditors will stop charging interest, so you may end up paying more for a lot longer under that process.

[jpj]

As Melanie states "you cannot avoid the equity provision" and you cant, but just cause it is in your IVA doesnt always mean you will have to release money. You usually only have to release up to 85% of your properties worth.
I suggest you post how much your mortgage is and how much roughly your house is worth! whilst none of us can predict the value of your home in 4 years time,we may be able to give you some further suggestions.

[Soulgrowth]

One of the things that was a source of comfort to me whilst my debts were mounting as a result of bringing up four children on my own for many years was the equity in my property which I essentially viewed as a limited access 'savings account'. I always hoped that one day I would be able to use the equity in my house (my inaccessible assets) to address my debt problems ... and this has indeed proved to, thankfully, be the case.

An IVA is not about 'getting out of paying one's debts' as is so often hyped up to be the case in the adverts, but looking at ways to address one's debt situation in the best and most morally conscious way possible ... and if one has equity in one's house this can be a valuable source upon which to make an offer to one creditors.

The alternative to not addressing one's debts via an IVA is usually bankruptcy in which, in most instances, one would lose one's house anyway ... so crashed I would urge you to look at an IVA as it will put you back in control of your finances and relieve the associated stress whilst addressing your debts in a morally conscious manner. [:)]

Good luck, do let us know how you get on.

Debbie

[crashed]

thank you guys for the replies really appreciate it!

i read one of the persons at melanies giles sites that she had 40gran worth of dept they reduced it to 9,500 and the rest was written off. but i supposed all our sircumstances are all different.

also just couldn't afford to remortgage my house as it means that instead of paying just 10 yrs it will go up to 20yrs perhaps 25yrs. back to we're i started. just could'nt afford that i will be old by the time it's finishes. but never mind, i supposed what ever will be will be.
after this will be sorted hopefully i will get accepted for an iva keep my fingers cross. i will never go in dept ever again.
thank you guys once again for advise and time.
god bless us always!!

[Reviva UK]

Hi crashed

I always get worried by some of the claims of various IVA sites. several of the companies have been taken to task by the advertising standards folk because it may be misleading.

An IVA is exactly that INDIVIDUAL VOLUNTARY ARRANGEMENT and because it is individual you are well advised to steer clear of the large factories and deal with someone who can really spend some serious time and effort getting to know you and your situation ( NOT VIA A 15 MIN PHONECALL)

I notice that you have been on Melanie Giles Site. Please check out the feedback from people on this site and iva.com re her operation.

You won't go wrong with having an explotitory conversation with her. You will at least know what you are looking at and can ask all the Q's you like.

Good luck let us know how you get on

[crashed]

thanks paul for your replies really appreciate
it. i will somehow manage it keep my fingers cross.
just confused who to trust now. i will just have to used my instict on this.

[Soulgrowth]

Hi crashed

Intuition is an important factor in selecting a suitable IP ... which companies have you sourced so far?

Debbie