unsecured debts added to the asset

[fbe]

I am just going through the process of IVA! very worried, I will get to see my propposal possibly end of next week or so, but I just had heard from a another debt company advisor that if the IVA fails,the crditors can take my assets or rather have the debts "charged" to the asset. Can anyone advise on that please. I am going out of mind now thinking that I will loose the asset.

[MelanieGiles]

Hi fbe

I assume that you are talking about the equity in your property? If so, the creditors do have the option of pursuing charging orders against you which will be registered against the property - effectively turning an unsecured debt into a secured one.

Try and look on the bright side, though. I am sure that your IP would not be putting your case forward if they felt it was likely to fail.

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

[fbe]

thanks for replying very qucik Melanie, just to get bit further inofmation, My debts are estimated to be £73k to £79. the asset is in the joint name with my partner, and have a joint equity of £70k currently. Does this mean that the chrging order will be on the whole of the equity? or what, i know I am asking to many questions, but at what point will they pursue with this charging order? Because my husband is willing to sell off and raise capital from selling his business if the IVA fails to settle my debts.

[MelanieGiles]

Hi fbe

No - the creditor can only charge against your interest in the property, but if you don't pay the agreed instalments they have the right to commence possession proceedings agains the property. Why not use some of the equity you have in the property to offer a full and final settlement to your creditors.

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

[fbe]

thanks for the advice Melanie!

I am actually proposing a one off payment of £28,000 raised via third party, because I cant re-mortgage and meet the increased payments, as I have nil disposal income. hopefully I should be able to raise this money from my family. I am being hopeful, I hope the creditors accept my proposal. i will let you know what happens.