I just don't know which way to turn on this

[odd_job]

Hi, I believe my only option is for me and my partner to go BR.

We've had an IVA approved but the payment stretches us to the limit - our house is on the market and as we have secured debt, the shortfall is to be included in the IVA once the house is sold. The shortfall will continue to increase until the house sells and so the IVA payments are set to rise before we even start making payments.

My question is with regards BR and which way to go about it.

Should we lower the asking price for the house in order to speed the sale up and then move to rented and file for BR? Would this be deemed as getting rid of "assets" for a lower price and viewed in bad light for the sake of BR?

Would we be better off finding somewhere to rent now and then simply handing the keys to the house in to the Estate Agents we bought it from? I've heard that we wouldn't be liable for re-possession fees and interest etc if we surrendered the house?

I just don't know which way to turn on this and am at a loss what to do?

Please help!

[Adam Davies]

Hi
Are you sure that the IVA are going to increase ?
They are based on your disposible income and that is a fixed figure.
Please post more details
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[mikebdomain]

I've heard that we wouldn't be liable for re-possession fees and interest etc if we surrendered the house?

Not true, I'm afraid.. you are until the house is sold and even then you are liable for all costs incurred.

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[odd_job]

Andy - IVA payments were originally proposed at £380 based on disposable income - at the creditors meeting HBOS wanted more p in the £ so payments went upto £410 to satisfy this.

IVA company had previously advised us on 3 occassions to stop paying all creditors, including the secured loan (but that's another story!) hence whilever we're not paying the secured loan, the amount that will be left "unsecured" after the sale of the house will increase, forcing the payments up.

Mike - how is it possible that we'd be liable for those charges if we were bankrupt?

If we were to lower the asking price of the house in order to get a quick sale, then go BR once the sale had completed, would it be deemed as selling off assets at a reduced price and go against us in BR?

Please help!

[mikebdomain]

Sorry, you were, I believe talking about handing the house back outside of or before bankrupty. Obviously if you are bankrupt, you would not be liable

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Adam Davies]

Hi
Quote "hence whilever we're not paying the secured loan, the amount that will be left "unsecured" after the sale of the house will increase, forcing the payments up."
The payments can,t go up as you will not have the money.What will happen is that the dividend to your creditors will go down.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[odd_job]

Point 1 of the Modifications states:

"Unsecured creditors must receive a minimum dividend of 36p in the pound or the arrangement will be deemed to have failed"

How can it be possible for the payments to not go up if the secured shortfall continues to increase pushing up the overall unsecured debt?

[Adam Davies]

Hi
Well you may have to extend your IVA for a few months to reach the minimum dividend.
In an IVA all your disposible income makes up the payment so you just can't increase the payments to meet the required dividend.Don't forget that any extra payments that you make over the course of the IVA will go towards meeting the minimum dividend.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp