I have decided that I am sorting out my mounting debt situation. I have told my partner, who whilst is really cross & upset, will help me. My debt is about 110k. Together we may be able to remortgage and get some help from parents, which would mean we could raise about 40k. WOuld this be a practical starting point for a Lump sum IVA over 12 months. I can also make monthly payments for that 12 motnhs too.
I'm glad that your partner is being supportive. Mine was angry too when he realised the extent of our debts!
With a lump sum IVA, I am not sure if you can pay it across over 12 months. Usually it is paid all in one go.
If you make monthly payments as well they are normally over 5 years, not 12 months.
One of the professionals will be able to assist further as I am really not sure about this. However, I do recommend that you visit www.iva.com for a list of IP companies and reviews. Give one or two a ring and they will give you free and impartial advice as to all the options open to you and the best way forward for you.
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
An IVA is basically a comparison with bankruptcy and provided the return is higher it can be recommended to creditors. There are various types of IVAs and short term IVAs can be done. If for example you have money that could be paid until the remortgage came through and wiped the surplus out, this may well be acceptable.
You should speak to an IP to determine what the best option is for you. Your partner will need to be kept informed as there is a jointly owned property and any decisions made should not unfairly prejudice him. All in all, what you are suggesting seems viable but you must be sure it right for you, your partner and your family. Good luck.
Thanks once again Michael, I wasn't aware that short term IVAs could be done.
You learn something new every day!
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
Not everyone is suitable for 5 years. We have 2,3 or four year IVAs in addition to the lump sum one offs. For example, we had a soldier with two years left until he would be discharged with a large bounty. His IVA ran for two years and then he had to introduce a lump sum but was allowed to retain enough to buy a small chip van. Given the reduced earnings and increased expenses as a civilian he would no longer have a surplus and the IVA was to close at this point.
Provided it is all explained to creditors at the beginning there is usually not a problem. They may ask for another meeting of creditors before closure to determine the up to date position of the client but that is about the height of it.
Thank you Michael. I shall endeavour to remember that.
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
What is dac26 present 85% interest in the equity? If this is less than the 40K on offer (with the help of the partners equity contribution) plus ability to pay from DI for 12 months lucks on face value reasonable BUT if DI is high creditors might want a little more.
Please discuss with an Insolvency Practitioner your options. Visit www.iva.com and see reviews on several and pick one or two to have a chat.
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.
It sounds like a very good offer to me - a couple of years ago we were doing a lot of lump-sum based offers from remortgages where they ran over 12 months. Sadly this is less possible now with a more frosty mortgage marketplace, but if your offer is the best you can do in comparison to a 5 year repayment plan I would go for it.
Just make sure that you are not jumping from the frying pan into the fire, as that money will need paying back perhaps over a lengthy timescale.
Have discussed with IP. Equity is about 70/80k * 50%=35k *85%=circa 30k. In principle mortgage co have agreed they could top up on mortgage plus help from parents woulod mean a full and final offer of around £50k inc IP cost's. To raise all of this I would have to cash in an Endowment (Is with same bank who is also one of the creditors)and use savings. I am not proposing to make monthly paym,ents on top.DAC26
David Mond wrote:
What is dac26 present 85% interest in the equity? If this is less than the 40K on offer (with the help of the partners equity contribution) plus ability to pay from DI for 12 months lucks on face value reasonable BUT if DI is high creditors might want a little more.
Please discuss with an Insolvency Practitioner your options. Visit www.iva.com and see reviews on several and pick one or two to have a chat.
Seems a more than adequate offer. However, I am not sure that you would need to surrender the endowment if your parents are offering third party funds in excess of it's value. How much is it worth and what are youyr parents offering?
Endowment worth about 13k parents have offererd 10k. Mortgage could be upto 30k based on their telephone interview with me.
Many thanks
Michael Peoples wrote:
Seems a more than adequate offer. However, I am not sure that you would need to surrender the endowment if your parents are offering third party funds in excess of it's value. How much is it worth and what are youyr parents offering?
This looks like the makings of a very good offer, but the endowment policy will probably need to be taken into account given the figures you have presented.
Your offer sounds more than adequate - have you selected an IP yet?
You need to have a chat with an IP and give him/her details all of your personal and financial circumstances and particulars.
Visit www.iva.com for reviews on firms and practitioners and select one or two to have a chat with. They will give you the appropriate advice and it is free as to what offer you should make to your creditors.
Let us know how you get on.
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.
