we are about to enter an iva hearing is the 6th oct. we own a property abroad which we rent out. my worry is if the tenants move out we can no longer afford the mortgage and would try to sell. however this in a saturated market is unlikely. what we could hope to get for it would only just cover the mortgage owed. The other alternative is to hand it back to the bank. This would mean we have no assets would it then be a better option to go bankrupt ?
You need specialist advise .. it would not be appropriate to advise you on the forum. If you are unsure then ask for your iva to be put on hold to give you time to speak to two or three other companies. It is really impotant to understand in full whichever option you decide to take. The next five or so years will not be easy whichever route but at the end you will be debt free.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
This should have been explained to you by your IP. The debt should be captured within the IVA but this depends on where the property is and whether or not you intend to ever return there.
What incentive is there for you to keep this property?
Hi Jacqui - if you have any doubts then it might not be best that the IVA meeting has been called. Make sure you are confident this is what you want. How much are your debts? Do you own any other assets?
this is jacquiw from the original post, i had to re register. Im still at a loss what too do had so much conflicting advice. The house is in spain and we do not intend going back and anyway i think we will lose it shortly. We currently live in a static caravan but only for seven months of the year the other five we sleep at family/friends etc. Will this been taken in bankruptsy?there is no outstanding loans on it.Also i did read an earlier post saying that eventually when we can afford a proper home the site fees will not been took in to consideration as outgoings. at the moment the preposed iva is 130 a month,thats wit the living costs living in the van, surely once we do move as our expenses go up the iva might fall below 100 so it will fail anyway ?
our unsecured debts are 40.000 our only paid for asset is this caravan. As i said no equity in the house which will soon be gone anyway. Surely this will effect the iva too? i have spoken to a debt charity their advice was to offer a small token payment a month and to wait and see what happens to the house and go from there. but quite frankly i know whats going to happen and i need to make a decision as its making us both ill. We just dont trust our judgements anymore.
Hi the lowest viable iva that I am aware of is £70 per month.
You could go into a dent management plan to allow time to sort things out but if you go down the bankruptcy route you still need to find the initial fees upfront (unlike an iva).
Making nominal payments might be a good thing.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
There is a risk with the static caravan in bankruptcy so you do not want to end up homeless. Personally I would get rid of the property in Spain and let the bank take it. Any shortfall would be included within your IVA and hopefully this would free up some extra money if the property in Spain is operating at a loss.
If you have a meeting of creditors next week you need to speak with your IP as agreeing now could be a mistake if the IVA is doomed to failure. You can withdraw the proposal and submit a new one later when you are more confident or you could proceed if you get some comfort from your IP.
The caravan is included in the iva was more worried about losing it if we went bankrupt. Its worth about 15.000. But would have to be sold through the site so after they took there cut would probably get about 7.000.