www.iva.co.uk

Hi,we are currently in a dmp but have just been issued with a charging order on our property,we have been refused an iva thus we started the dmp,my ? is this...we have debts of around £45000 and a mortage balance of £112,500 and no equity. as the dmp isnt really solving our problems with creditors would we be better off fileing for B/R ourselves?And is it right that a relative could purchase the property from the o/r for £1? thx in advance Gary

Hi there

It would seem like Bankruptcy it is your only remaining option to put an end to this for you and your family. Owing that much in a DMP is as good as endless. I do believe you can remain in the property and a relative can buy the Beneficial interest, I could'nt say how much this would be as I think it comes with fees. I am not a professional just another person who has been faced and challenged due to debt.

I am sure an expert in these matters will be along to advise you further.

Welcome to the forum and good luck.

If your house is in negative equity someone can buy the beneficial interest for £1 plus solictor's fees, which works out at £211.

As Lily says BR would put an end to to your debt worries.

Hello Gary,

How much are you paying into the DMP each month?

Would there be any professional implications for you if you went bankrupt?

hi Andrew,we are paying £256 pm and no professional implications

We are just about managing the mortage on our joint incomes but are sick and tired of the threatening letters and phone calls but obviously dont want to lose our home so was thinking about b/r

It seems a shame that youhave been refused an IVA as that might have been the best way for everyone to get the best solution.

You might do well to speak directly to Andrew Graveson from BrightOak who would - I am sure - be pleased to review your DMP position and advise on the viability etc.

If he felt that a DMP was not the way forward he is qualified to give you advise on bankruptcy and the implications.

please make the call - you will feel better afterwards

we were refused by Black horse when every one else either voted yes or didnt vote,and being the largest creditor we had no chance,b/r appears to be the way forwardthe fact that we are also probably in negative equity is perhaps swaying me some what

I am afraid that Black Horse do have a high level of rejections in IVAs - I would seriously consider bankruptcy as you have demonstrated your wish to make a sensible offer of repayment, but one creditor have scuppered the chances for others.

If this Blackhorse rejection starts becoming more problematical then the DRF (Debt Resolution Forum) will start work on ascertaining their valid/protocol reasons - they are already involved in trying to sort out Northern Rock Issues. Give me more examples please

I had a dispiriting conversation today with a gentleman who was featured this morning on a national radio show.

Fixed rate mortgage period came to an end with Northern Rock, 100% loan-to-value mortgage, payments increasing from £1400 to £2100 now he is moving onto the "SVR".

No prospect of moving to another lender due to the LTV, N Rock offering no alternative products.

He's never missed a payment on his mortgage or any other credit commitment. Such a shame that he's now in a position whereby his previously manageable finances will now be so unmanageable that he's considering handing the keys back to the lender. This of course creates the risk of a loss the all of us as taxpayers as well as the huge and personal loss to the caller.

Avoidable.

Gary,

It might be worth seeing if the DRF will take up your case.

Based on the information you have provided however it would seem that bankruptcy may have become the best option for you.

A real shame that you're being encouraged down this course of action while doing your best to repay what you owe.

Interesting you mention that Andrew

I am starting to see a huge number of people with excellent credit ratings, small personal debt, but who have a number of buy to let properties and now have negative equity on each, and as per your example are now several hundreds of pounds down each month because of their inability to refinance .

If the mortgage companies ( and 2nd charge providers ) don't address this QUICKLY then the number of voluntary reposessions will rise beyond all expectations.

If they were more flexible then no one would suffer.

Interesting you mention that Andrew

I am starting to see a huge number of people with excellent credit ratings, small personal debt, but who have a number of buy to let properties and now have negative equity on each, and as per your example are now several hundreds of pounds down each month because of their inability to refinance .

If the mortgage companies ( and 2nd charge providers ) don't address this QUICKLY then the number of voluntary reposessions will rise beyond all expectations.

If they were more flexible then no one would suffer.

This is going to present a huge problem to the Mortgage providers unless someone comes up with an American type of "help"scenario. Will the Government set up a Special Purpose Vehicle (SPV) to buy up these properties and give a re-mortgage at affordable rates?