two armed robberies and a nervous breakdown

[marko]

OK here goes, I used to run a post office and had two armed robberies over the last three years and from it in August had a nervous breakdown and finish from the post office. The post office is now close and just now the doctor saying I can start looking for work again. Going to Jobcentre plus pathway today about looking for a job.

but got some debts to sort out, esp since Aug to now most has not been paid much (too unwell.)

Got an egg for £12240
Tesco £1592.68
Cahoot £12566.91
Nationwide £8184.53
nationwide £8771.99
Sainsurys £5013.40
Capital One £2069.49
Lloyds TSB £4025.43
other debts £14000
Overdraft £3000
Therefore £71420 is unsecure debts

plus to add that £643.62 is electricity + gas outstanding

£2550 is mortgage arrears (three months)

Outstanding mortgage is £90K

House value is between £140K to £170K (get different prices.)

Know someone who want to buy / rent the part that used to be post office. Which will cover the mortgage (£850 a month) and hopefully and I wife will get a job in a month or two. Which will be sole disposable income than.

So question can I go into IVA with no income expect for incapabity benefit mainly and house equity or do I have to wait until I have a job? Don't own any expensive stuff, expect for the house. Cause I am getting better now want to sort everything out and start afresh.

[MelanieGiles]

Hi marko - so sorry to hear about all of your recent troubles.

You could enter an IVA by effecting an equity release over your property, but should ensure that you are able to cover the increased mortgage repayments from your income. As you have mortgage arrears, you will probably need a sub-prime mortgage, and these are generally more expensive, but you would need to take specialist advice from a mortgage broker in this regard. I could recommend someone to you if you wanted to explore this as an option. Is the property registered in your sole name?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[finebridge]

Hi Marco,

I am sorry to learn of your robberies, how frightening!

Firstly it is most important to get your mortgage up to date as getting your home repossessed at this stage with the amount of equity you have.

You can enter into an IVA if you are offering a full and final settlement from the equity from the sale of your property even if on benefits as you will not be making monthly voluntary contributions.

Another way may be to wait until the property is sold and you have a job, then offering a lump sum again but if this does not cover 100% of the debt then you would also need to offer your surplus income towards the debt.

You do have a few options so it may be better to have a chat with one of the experts on the forum to see the best way forward.

Kind regards

Nicola


Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[marko]

Hi, to answer a few questions, the property is in my name only as is all the debt expect for £1100 of an overdraft which is in joint name of my wife and I. Olga been off work as well cause when post office close she was working in the office hence lost a job but also she slip on a wet floor in tesco and damage her arm. Only now got better and hence looking for work. A claimm has been put into Tesco but will take a year to come through. The current mortgage / commerical mortgage was over 15 years on a repayment basis now completed 3 years of the 15 years. Lastly how do I contact an expert on here to discuss this? Since I might be wrong but feel even if I get a job won't be able to pay the full monthly payments, esp the arrears, and if go BR that has no real advantage but alot of disadvantages. One thing I was thinking of might be possible is by a month have the place rent out (that will cover the mortgage) I have a job as will wife. Than have say £500 per month to pay into IVA agreement, than in 6 years time remortgage the property to release some equity and pay whats left on IVA agreement to close it.

[MelanieGiles]

Hi again Marko

Although the property is registered in your name, your wife probably has a good claim to be entitled to some of the equity depending on how long you have been married.

The last thing you want to do at the moment is to enter into bankruptcy proceedings, as your interest in the property will vest in a Trustee who will take steps to realise it in order to repay your creditors. As this effects your home, you ought to take whatever steps you can to protect that.

My gut feeling is still to remortgage and offer a full and final settlement. Your share of the property could be calculated at between £25,000 and £40,000. An 85% loan to value remortgage would bring in sufficient for you to make a sensible offer to your creditors, alleviating the need to make ongoing contributions which you will struggle to pay given the uncertainty of your earning capacity.

If you wish to contact an expert on the site, most of them have websites as a first point of contact.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk