www.iva.co.uk

A good friend of mine is in dire straights. His wife has just left him. They have a big mortgage (£190) and have £40k negative equity. He also owes 10k personal loan, 4k in credit cards and overdraft. He is a contractor so is not in a permanent job. He wants to keep his house but can't afford the mortgage repayments (1500) as well as the bills by himself. He can get someone in to live with him but his wife wants to be taken off the mortgage so that she can get assistance with living somewhere else on her own (with small child). Can he look at an IVA with negative equity or will they just take the house off him once they know the situation? I assume bankruptcy will mean taking the house off him too? thanks

Hi

I am certainly no expert but i dont believe that he will loose the house in an IVA as this is one of the benefits however from reading this am i to understand that the level of unsecureed debt is 14k as this may not be enough for an IVA. But as he is in negative equity he may not loose the house if he went bankrupt.....I may be very wrong on this but an expert will be along soon

xx

I'm not a technical expert, but I think Sarah is right. If your house is in negative equity, I think it is safe in bankruptcy, will certainly be ok in IVA.

If he owes less than that needed for an IVA, he could always try a DMP. It might not take him too long to pay it off that way.

I am sure one of the techies will be along shortly.

kallis3 wrote:

I'm not a technical expert, but I think Sarah is right. If your house is in negative equity, I think it is safe in bankruptcy, will certainly be ok in IVA.

If he owes less than that needed for an IVA, he could always try a DMP. It might not take him too long to pay it off that way.

I am sure one of the techies will be along shortly.

You have to remember thought that can they not chase for equity in property for 3 years after the date of BR so if the property prices do go upwards(it may just happen). I may be totally wrong,it does happen.[;)]

I think you are right Paul, but at the moment, I can't see that happening. It'll need a miracle to get us out of this hole!

Hmm ok , sounds positive at the moment.

What is DMP?

Our house has risen in value,not making us millions but increasing. So glad we bought sensibly when the bank were throwing mortgage money at us trying to get us to take out a mortgage we couldnt afford.(the only good money decision I have made,it must be said!!)

Hi A debt management plan is an affordabe amount agreed with creditors every month you can find someoone to help you with this but you will not be covered by law and they can start interest and demand payments unlike a IVA

Ah right ok. Thanks guys, you have been very helpful. I am going to put him in touch with one of the experts to discuss in detaill.

Thanks again

Depending on all the financials and details of you income and outgoings an IVA or DMP might be appropriate. Visit www.iva.com to see reviews and chat with any one of a number of experts. You may for example be initially repaying capital and interest on your mortgage. You may be able to switch to interest only for a period. Chat with an expert who I am sure will give you the most appropriate advice.