Many thanks Michael & EMS,
As you say, it all depends upon my IP (Varden Nuttall) and Creditors to which I have already contacted them this week but my contact is on holiday until Monday, hence the ask online to help me 'think this through'.
I cannot see my Creditors accepting the £27,625 as a F&F payment when they want 100% of the Debt as Agreed in the IVA and I am in employment with the means to pay for the duration of the IVA period into the pot. Although I would be interested to hear any experiences/opinions where this is the case...my gut feeling is that they will try anything to get as much as they can and would not be willing to write-off the debt (already 25% off original debit & obviously not interest chargeable) just for the sake of saving admin costs?
So Michael, am I really allowed to keep 15% of my share of the Equity i.e. £4,875...which is not enough to buy anything outright and I cannot get a mortgage until the 6 years have passed - right?
So I am guessing that I cannot keep this money as Creditors want 75p in the £ from me...meaning the sale of the house creates a lump sum of £27,625 towards the IVA and I must keep paying £182 per month (£1,638 paid to date) = £29,263, leaving C. £5,700 owing at 31 more payments of £182 and me using the £4,800 to pay 6 Months rent in advance & moving costs. I guess this is the solution if, due to me having an IVA I need to pay 6 Months rent in advance, albeit just finished a 6 months rental on a flat without any credit search or standard deposit payment problems whilst I let my house out to tenants (which created its own problems as they kept breaking things, water damage to floors/ceilings, damage to flooring/garden by dog that I had to pay to rectify).....
So here is the rub, it is just easier/simple to pay off the IVA ASAP using any Equity allowance retained into the pot but possibly not immediately as a 'rainy day fund' would be helpful until I find somewhere 'nice' to live (i.e. 12 Months). So 12 payments of £2,184 & £4,800 or so in the bank to make a final payment would mean I would be debt free in 12 months.
Why is 'finding somewhere affordable to live so difficult'? I would even live in a Caravan Home to keep my living costs down, but I need a 'permanent home' as most have 8 or 10 month residency as Holiday Homes only or others that allow you to live 11 months of the year as your main residence, pay council tax etc. which lives me need to rent a bonafide residence for 1 month that is not possible. Obviously I am not entitled to Social Housing as earn too much and can readily pay for Private renting...its just that I see paying £650 a month towards someone else's mortgage as a waste of money/time.
Upon reflection I may just be making life hard for myself by thinking of solutions that unwittingly create problems of their own i.e. Cheap Houses up North may need a lot of repairs, been in a high crime area and is a long travel to visit friends, family, work clients etc.
I am now researching renting in Wales which is much cheaper than the South East and not so much of a Drive (3-4 Hours to Surrey from South Wales) but fuel costs and frequency of Journeys may offset the benefits of cheaper monthly rentals... I need to visit Surrey at least once a week (If Superfast Broadband is available which it is in some areas of Wales), ideally twice a week to my office...
I know, others may be thinking change jobs to live/work in the same village/town...but I would not earn the salary I currently get by working in the South East that I hope will enable me to rebuild my financial security for what is left of the time before retirement now that I am 41 years old and having to start all over again for the second time after a Divorce 13 years ago, I have children and my mind is on them too through this process.
Cheers, Mark
Last edited by
markgb on Sun Aug 18, 2013 10:24 am, edited 1 time in total.
