hi can anyone help

[steabbott]

hi can anyone help .
i am sure you have all heard this before but i am with a fee charging company that is acting as a 3rd party to help me deal with debt .
i am married and have the following
132000 mortgage
36000 secured loan in both our names
house is valued at 150000.
i also have a unsecured debts of
Northern rock 22000 mine
sky card 4000 wife
barclaycard 5000 wife
2 hsbc cards 18000 mine
mint card 7000 wife
sainsburys loan 11000 mine
I owe unsecured debts of 78000 or there abouts .
Is bankrupcy an option i should seriously consider as i have negative home equaty and would they a this mean there is no point selling the home .
Any help or advice would seriously increase the amount of sleep i currenly get .
Thanks
My wife and i earn 3150 total a month but have expenses of 2650 a month .the remainder £500 is paid to a 3rd party in a informal agreement with the creditors.
I have two young children and am not sure whether i have enough disposable income left to satisy an iva as the 3rd party i am using are saying i they need to set an amount agreed by the gov for clothing/food etc that is way more than we are spending.

[Adam Davies]

Hi
There are guidelines for an IVA,The CCCS guidelines,there are minimums and maximums.This should not stop you from entering into an IVA if you are already paying £500 into a DMP.
£500 on unsecured debts of 78000 will return around 27p in the £,so on paper is viable.
It will depend on many factors so your best bet is to contact an IVA provider and talk through your options
Regards

[Viki.W]

Hey Steabbott, welcome to the forum. You'll get great advice and support here. As Andy has said, you really need to talk to an Insolvency Practitioner for a second opinion. I am with Melanie Giles who is an expert who posts on here and can highly recommend her and her team. Keep posting. X

[size5]

On paper, there is little financial advantage in struggling on, as you are, as you say, in negative equity and you seem to have very little quality of life.

You really need to speak to a professional as soon as you can, please visit www.iva.com, read the reviews etc and take time to speak to 2 or 3 different providers.

No amounts are set by the Government, but there are guidelines that IP's have to operate within. Things are never black and white, if you go BR, then without the mortgage and secured loan, but obviously with a rent instead, would you be subject to IPO's? Would you lose any vehicles?

The answer is that, without more info, I don't know, which is why you need to speak to someone as soon as you can.

Regards,

[MelanieGiles]

I certainly cannot see the benefit in you carrying on paying under a neverending DMP - unless you are motivated to pay off all of your debts in full.

An IVA is a definate possibility based on the brief information you have already provided, however this would involve you making ongoing payments for a period of at least five years. Bankruptcy is an alternative option, and the best thing to do would be to take advice from an insolvency practitioner who can advise you of the advantages, disadvantages and implications of all solutions available to you.

[steabbott]

I certainly cannot see the benefit in you carrying on paying under a neverending DMP - unless you are motivated to pay off all of your debts in full.

An IVA is a definate possibility based on the brief information you have already provided, however this would involve you making ongoing payments for a period of at least five years. Bankruptcy is an alternative option, and the best thing to do would be to take advice from an insolvency practitioner who can advise you of the advantages, disadvantages and implications of all solutions available to you.

[steabbott]

[quote]Originally posted by steabbott

[quote]Originally posted by MelanieGiles

I certainly cannot see the benefit in you carrying on paying under a neverending DMP - unless you are motivated to pay off all of your debts in full.

An IVA is a definate possibility based on the brief information you have already provided, however this would involve you making ongoing payments for a period of at least five years. Bankruptcy is an alternative option, and the best thing to do would be to take advice from an insolvency practitioner who can advise you of the advantages, disadvantages and implications of all solutions
available to you.

Thanks for the advice so far . I am unsure how easy it is to go for a non profit 3rd party to take over my dmp as this would give an extra £95 a month to my credtors overnight .Would they be the best people to ask about ivas too or is this done independantly

[MelanieGiles]

Any insolvency practitioner would be happy to talk to you about IVAs or any other form of debt solution. If you prefer to continue the DMP with a "non-profit" organisation - try the CCCS or Payplan.

[steabbott]

Any insolvency practitioner would be happy to talk to you about IVAs or any other form of debt solution. If you prefer to continue the DMP with a "non-profit" organisation - try the CCCS or Payplan.

thanks melanie

i guess i am really worried about the prospect of bankrupcy and losing my home . Is there any incidence of not selling a home as there is no equity in it so it would not release any cash for creditors or is it compulsary that it goes after 12 months .
I am also a little worried that athough i know an iva is not free to administer that the iva company that is an extension of my dmp company is not charging fees in excess of others hindering the the chances i have of being sucessfull .

Is there anyone out there that provides an iva service free or low cost .
I am also on a repayment mortgage with northern rock that is fixed until dec 09 and am considering going to interest only to provide more to an iva proposal . is this a sensible option ?
any help appreciated

[Adam Davies]

Hi
In a fee paying DMP you creditors receive more.
In the vast majority of IVAs your creditors pay the IP fees,not you.You will pay the same each month regardless of the fees.
Quality of service is far more important than fees
If you have no equity in your home then in bankruptcy it is possible for you to keep your house if a third party buys the interest in the house from the OR for a nominal £1
Regards

[steabbott]

Hi
In a fee paying DMP you creditors receive more.
In the vast majority of IVAs your creditors pay the IP fees,not you.You will pay the same each month regardless of the fees.
Quality of service is far more important than fees
If you have no equity in your home then in bankruptcy it is possible for you to keep your house if a third party buys the interest in the house from the OR for a nominal £1
Regards

Thanks for this I think an iva is a more suitable option and has been recommended by my IP .
I wonder if you can give a second opinion on something though .
I have around a 27p in the £ offer over 10 creditors but 2 card and one unauthorised overdraft on a currect account , are hsbc . My IP is asking me to go interest only on my mortgage as she says this 27p will not be accepted as hsbc have a 40 p rule. is this true as i really dont want to go down interest only route as as its northern rock mortgage there will be no way back to capital in 5 years time i think .
Any advise ?

Thanks Steve

[kallis3]

HSBC do seem to have this benchmark, but I am sure I have heard on here that they have settled for less.

You could always take advice from a different IP.

Melanie or Andy will probably be able to answer this better than I can.

[jforbes]

Sorry my reply to your post is late and not too late.

Listen mate - GO BANKRUPT! Ive been where you are.

You have no equity in your property. Its NOT an asset and cant be sold. As long as you pay your mortgage your home is safe. DONT change to inerest only. STAY on repayment or how are you ever going to pay your mortgage off? You are only creating a nice big juicy fee for a Supervisor and creating another future problem for yourself!

Bankrupty will last twelve months not 5 or 6 years. Even if you have to make a payment in the Bankruptcy as I did it will be far less than tHe IVA.

In my opinion the Debt manager is ripping you off, so will a supervisor.

Too many people on this site are too happy to push, and push hard, the fairytale that an IVA is the absolute and only real solution. Woldn't surprise me if a load of them were Supervisors circling the unwary like sharks.

Your priority is you and your family.

Good luck mate

[Sarah Nancollas]

Steve

HSBC used to have a 40p in £ hurdle rate - not any more in my experience. We have a recently approved case where HSBC accepted around 27p in £.

If you are worried about the advice you are getting, get a second opinion. If you look in your local Yellow Pages you should find all the IPs in your area. Make sure they are licensed. R3 who are the main trade association for IPs usually have an ad in YP that gives details of their local members.

[Skippy]

Jforbes, while I totally agree that Steve's priorities are him and his family, your comments about IVAs and supervisors are very harsh. A lot of people are happy with their IVAs, and not all supervisors are sharks.

Anyone considering an IVA needs to look at all options and choose the right one for their circumstances. Just because someone has no assets doesn't mean that BR is automatically the right decision - it could affect their job, they might not want their name in the papers or they might just want to pay back as much as they can.

While BR will last 12 months, if someone has more than £100 disposable income they would be expected to pay a percentage into an Income Payment Agreement of 3 years.

BR was obviously the right decision for you as it was for me, you have to bear in mind it won't be right for everyone.