If we can sell we can clear all debts

[t-d]

Hi Have unsecured and secured debts, Unsecured about 22500, secured roughly the same. Struggling to pay due to change in circumstance over the last year, have put house on the market about six weeks ago and lots of interest but no money on table yet. If we sell we can clear everything. Should I write to individual companies and explain and ask for a period of say six months to sell? Is that usual and if so do they freeze interest or continue to roll it up? Otherwise will have to go the IVA route.

[Viki.W]

Hey t-d, welcome to the forum. If you think that you can sell soon and repay everything and still come out for funds to live on then you should definitely speak to your creditors. Maybe you could start a debt management plan. Please hang in there for a technical expert to advise you. X

[size5]

Hello t-d,

A DMP could work for you, assuming that there is some surplus after all living costs, but also assuming there is not enough to cover contractual payments to the unsecured debts. It may buy you enough breathing space to do what you want, the problem here being, as I see it, that houses aren't really selling at the moment according to all the figures, and those that do are going for less than the asking prices generally. If this is the case then you may wish to ride out the storm in this sector, so to speak, rather than potentially losing a lot of money on the sale. Again, a DMP may be an invaluable tool in assisting you until then but you would be well advised to take professional advice on this so you may wish to visit www.iva.com and have a look round, speak to 2 or 3 people to see what ALL your options are and to get a balanced view so you can then make your decision from there.

Regards.

[t-d]

Thanks for the replies. First course of action is going to be working out our budget. Trouble is both our incomes are very variable as well as generally low! The good news is that the housing market here in the deep SW of Cornwall is still moving a little bit. Cash buyers seem to be cashing in on hot property while the prices are down as far as I can see, but the housing "chain" involving mortgages is as desperate as everywhere else. So we have our fingers crossed. We intend to rent after that so debt clearing is in sight providing we can sell. It is such a juggling act knowing where to start and how. It is good to know there is plenty of help out there though and am grateful for that![:)]

[Viki.W]

I wish you the best of luck with your house sale t-d. Keep posting. X

[MelanieGiles]

The best thing to do would be to write to your creditors to explain your circumstances, continue to send them pro-rata payments until the house is sold, and acknowledge that if they pursue charging orders against the property that this is not so bad, as they will get paid directly then out of the eventual sale proceeds.

[Andrew Graveson]

We've worked with a number of clients entering DMP's until such time that they can sell the home to repay all of the debts.

Where it is demonstrated to creditors that this is the case (letter of explanation, copy of sale particulars etc) the creditor response is usually very positive.