I own my own home outright.i owe apx 30,000 to 6 crediters.if i go for iva what is position with house.what if i sell house in intrem period and how is credit rating affected at end of iva
If you own your own house outright, you will not be classed as insolvent as there should be enough equity to repay your debts in full.
I believe you would be expected to remortgage in order to pay those debts off.
If you sell the house, obviously you can pay your debts off.
With an IVA your credit rating is affected for 6 years from the date your IVA is approved.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If you have no mortgage or secured loans on the house, and the unsecured debt is £30k, then as Kallis says you are not classed as insolvent.
Best bet if this is the situation is to see if you can gain a loan or mortgage to accomodate your level of debt so that it is managable - this way you would not affect your credit rating at all.
By taking out an IVA or considering bankruptcy you are basically wiping out your credit rating for a period of 6 years - in your position a debt management plan may be more appropriate.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Will need to know what is the value of your home and what morgage and/or other loans (if any) you have on it. If there is a surplus then arrangements could be made with your creditors either through an informal or foormal arrangement. Give us the information requested and then more direct advice can be given.
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.
If you have sufficient equity, then you should be able to pay your debts off in full without resorting to an IVA, in which case your credit rating won't be affected (other than if you have defaulted on anything).
As David says, we need some more details before we can advise properly.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
