www.iva.co.uk

Hi,

I'm hoping you can help me as i've stupidly reached the point again where i've got more coming out than i have coming in. I have approximately 34k of un-secured debt on credit cards, an overdraft and a loan. Unfortunately however i'm only a year down the line from being in the same position previously. I also have a 64k secured loan with first plus.

I'm pretty sure that i don't stand a chance of getting another secured loan to clear my existing one, and my un-secured debt as i only have 40k equity in my house. What i was hoping was that i could perhaps take out an IVA on my un-secured debt and cut the credit cards up this time!

Please help. I don't know what to do

Thanks

Is the house in your name only?

If it is you will not be eligible for an IVA as you will not be insolvent as you will have a greater amount of equity in your house than unsecured debt.

You would either have to come to an informal plan with your creditors, release some more equity in your home and make an arrangement with your creditors, or sell your house and pay off all the monies owing.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

ThomasCharles wrote:

Is the house in your name only?

If it is you will not be eligible for an IVA as you will not be insolvent as you will have a greater amount of equity in your house than unsecured debt.

You would either have to come to an informal plan with your creditors, release some more equity in your home and make an arrangement with your creditors, or sell your house and pay off all the monies owing.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi Oliver,

thanks for your quick reply. The mortgage is in both mine and my wife's name, as is the secured loan. Surely the equity in my house is already written off against my secured loan?

The house is worth 140k, i owe 105k on the mortgage and 65k to first plus so doesn't this make me insolvent?

Karl

You are right, I thought you meant that you had £40k clear currently.

In fact you are actually in negative equity. This presents you with some more options, you could propose and IVA if you have enough disposable income (total income less total living and secured loan costs) or you could apply for bankruptcy (you will likely be able to buy the title to your house back for a nominal fee as there is no equity).

What is your disposable income?
Who do you owe the money to?
Is there any reason you would not want to go bankrupt?

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi again,

I currently pay between £500 and £600 on my outstanding unsecured debt.

1 credit card, unsecured loan and overdraft are with my bank (Nat West) i have another credit card with Mint (RBS) and 1 with Abbey (issued by MBNA)

My main reason for not wanting to go the BR route was that i was worried i would lose my home, car, etc. plus it might ruin any possible future decisions around moving.

Karl

What is your disposable income, your total income less your living costs (excluding unsecured debt)?

You are very unlikely to lose your house in bankruptcy, how much is your car worth?

Why do you think bankruptcy will affect your ability to move?

Your ability to move is already somewhat hindered by the fact that you are in negative equity.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Based on what you have posted here, I would think that an IVA is a good option for you. Why not contact some of the IP Companies who post on this forum and put your case forward to them. I am more than sure that you will get the correct advice as to which would be more suitable to you.

Sue

Ho Hum! Think I'll bang my drum!

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

You would not lose your house under bankruptcy proceeings, as it is currently in negative equity, and you are generally allowed to retain a car of up to £3,500 in value under such proceedings.

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