An IVA will not affect your wages, but your wages will be used to calculate the amount of disposable income you could afford to pay creditors.
If you are property owners, you will be obliged to attempt to raise money during the final year against your property, based upon a formula of lending of no higher than 85% loan to value, less the level of your current mortgage - and subject to a deminimis level of £5,000. The new mortgage payments must also no excees 50% of your current IVA payment. This largely releates to properties in which you live. If you have investment properties - either in the UK or abroad - it is quite likely that creditors will ask you to sell them for the benefit of creditors.
Can I suggest that you contact the following company, who claim to be experts in the resale of Bulgarian properties. I have not used them personally, but this may be a good place to try.
with regards to remortgaging, I estimate, that we currently have a loan to value rate of 93%. Given the current economic state, i dont feel that in 5 years time, i'll be within 85 %?. What will happen then ?
That is a deliberate preference, which will be overturned if you declare yourself bankrupt, and would need to be dislosed to your other creditors were you to propose an IVA - in which case they are likely to reject your offer.
Your Mum is a creditor, alongside all of the others, and should receive a pro-rata distribution of your estate. If you are intent on continuing with the property transfer, a DMP might be your only option - however you might struggle to find a company to represent you if they find out that you have dissipated assets in favour of a relative.
How much is the equity in the Bulgarian property, and how much do you owe your Mum?
Its valued at approx £55,000
I owe approx £30,000
Non of this debt is secured on the apartment.
The apartment is mortgage free, with no loans secured against it.
If the creditors take it, what will happen to the remaining £25,000 ?.
Is your Mum's debt included in the £30,000? If so, she will be repaid in full in any case, depending upon the amount you can sell it for, and any balance remaining will be available for you.
Please advise what monies you owe your Mum since 2002? Then answer Melanies question - we can then advise appropriately.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
First of all your creditors cannot take any of your funds/assets unless they get a court order and judgment against you. If you sell the property and pay off all your creditors (excluding your mum) then any balance is yours and you can settle with your mum.
If it is just the case that you are insolvent by the definition of being unable to pay your debts when due - then an IVA might be an appropriate vehicle to offer full payment as and when the Bulgarian property is sold and make arrangements with your mum within the IVA in respect of her debt. By the way how much do you owe your mum?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
