Thinkin on IVA but what about Home

[Fallenhero]

Hi all gettin to the point where i need to sort my debt out...and i just gettin more into debt..can people advise me on IVA...this is mostly to do with my home..

My home is worth around 119K and i have 66K mortgage on it
The Extra money the house is worth would pay if not all but most of my debt...

I dont want to remortgage as i wouldnt be able to pay back and if i did i would find it very hard for years...and not sure weather to just sell and start a new..

How can a IVA help....i just fixed my mortgage for 10 years..
and after reading this forum about the 4th year and releasing money from the home..how would this work..as the mortgage payments would go up and payments are half my wage as it is...how do they work out payments on the 4th year.And would they just ask me to release money at the start as that would pay all bills..??

[MelanieGiles]

Hi Fallenhero and welcome to the forum

Can you tell us how much you owed to creditors, so that we can advise you about all of the options available to you.

[Fallenhero]

I would say its about 40k maybe more...and gettin more into debt...borrowing from paul to pay peter...

[MelanieGiles]

You have more equity in your property than you owe, so an IVA is unlikely to be a solution for you, and bankruptcy proceedings would directly affect your property. A DMP would seem to be the most sensible option for you at this point in time, and when the mortgage marketplace settles down perhaps you could look at releasing equity to make an offer of full and final settlement to your creditors.

[Fallenhero]

Hi i been looking into DMP...but before i do that..i can still remortgage and find an extra 16000 pounds but i pushing myself with mortagage...my debt is around 27000...what is this final setterment figure???..would the credit people except this amount as final payment with a DMP..or shall i just pay any credit and try to pay whats left with a DMP..any ideas??

[MelanieGiles]

I suggest you speak to Andrew Graveson of Brightoak who is a regular contributor to the forum and runs a debt management company whilst also being a mortgage broker. He ought to be able to show you the right way forward with this issue.