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Well at long last my proposal has been signed and returned to my IP. What happens next and how long will it take to hold a creditors meeting ?
I have a mortgage offer from GMAC in place but I am a bit concerend as I read someware on the forum that GMAC can be a bit funny. In what way can they be a bit funny ? In the event that my IVA was rejected and I had to go BK my wife would look at buying my share of the house. Is the equity the same as it would be for a IVA or how do they work out how much it would cost her to buy my share ?

Hi
If you maintain payments on the mortgage then you will not have any problems.I,m guessing that they can be "funny" if you get into arrears.
In bankruptcy you wife would need to buy your share of the equity from the OR.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
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IVA Helpline: 0800 197 4838
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Is the equity worked out in the same way as in a IVA ? If I was to go BK would I be allowed to keep my mortage going if my wife brought out my share of the equity ?
My wife has a much larger share of the house then myself. Hoping it wont come to this but like to have plans in place if it comes to the worst.

Hi

If your IVA is rejected and your only option (after careful consideration) is BR, your wife is able to purchase your Beneficial Interest. However, please don't do this before you petition for BR, rather wait for the OR to go through all your assets etc with you.

Whatever the value of the equity in your home, it may be possible to negotiate an agreement to purchase the Trustee's interest in the property. First, you will need to obtain a valuation of the property. You would be better off having a surveyor (who is FRICS or ARICS qualified) to undertake this. It may cost more - a surveyor will give an opinion of the true value of the property whereas an estate agent may give the 'hopeful' value. There is nothing stopping you from getting 2 or 3 valuations as you only need to disclose the lowest valuation to the Trustee.

You will also need to get your mortgage lender to give you an up-to-date balance on the property, together with balances from anyone else who has security on the property. If you deduct these secured balances from the value of the property, this will give you an idea of the amount of equity you are dealing with. If you are going to make an offer to the Trustee in BR, they should also allow for the reasonable costs of selling the property. If you don't reach an agreement, the Trustee will repossess the property in due course and will also need to instruct estate agents and solicitors and of course pay their fees.

For example:
Value of house £120k
Mortgage £100k
Equity £20k

As you and your wife are joint owners, on the face of it, the trustees interest in the property is worth £10k (equal shares).

Equity £20k
Less estate agents fees c2% plus VAT of £120k £2,820
Less solicitors costs £500
Total equity available to Trustee £16,680

The trustee may therefore accept 50% of this figure - £8,340. This scenario is pretty straightforward, but if there are aother issues, may I suggest you Seek Legal Advice!!!

Apologies if this is somewhat longwinded!!

Good luck

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

just like to add also not all OR's will take into account fees, so if the equity is £20k they may ask for your full half of £10k, my motto is always think the worst and anything extra is a bonus.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

Trsutee's in bankruptcy will rarely accept an argument for costs of sale if there is no sale, so I concur with Kerri's advice above.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk