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Posted: Fri Jan 29, 2010 7:51 pm
by mitsu9
hi we are being repossessed which is close to going through.im brupt and so covered for any shortfall.wife isnt and we know there will be a shortfall and she will be liable.she also has debts of about 17000 and poss shortfall of maybe 25000.my question is can a mortgage/secured loan be included in a iva.thanks
Posted: Fri Jan 29, 2010 9:04 pm
by marky b
im pretty sure iva can only include unsecured debts.
Posted: Fri Jan 29, 2010 9:40 pm
by Skippy
I think that once the house has been repossessed the debt then becomes unsecured and can therefore be included in an IVA. Hopefully one of the experts will be able to confirm.
Posted: Fri Jan 29, 2010 10:12 pm
by Lisa2009
I agree with skippy. I do believe the secured debts will become unsecured once the house is reposessed.
Posted: Fri Jan 29, 2010 10:39 pm
by kallis3
The shortfall does become unsecured and can be included in an IVA.
Posted: Fri Jan 29, 2010 11:28 pm
by rhondda2
My Mortgage shortfall was included in my IVA,as Kallis3 says when house is repossessed ,any monies then owing become unsecured.
Posted: Fri Jan 29, 2010 11:56 pm
by MelanieGiles
Does she have other debts as well as the potential mortgage shortfall?
Posted: Sat Jan 30, 2010 10:57 am
by mitsu9
hi yes she has 3 other debts halifax bank overdraft/capital one card and barclaycard.these have been on a dmp for 4 mths
Posted: Sat Jan 30, 2010 11:28 am
by MelanieGiles
What does she pay into the DMP on a monthly basis?
Posted: Sat Jan 30, 2010 2:28 pm
by mitsu9
at the moment only 50 a month.we think total debt will be 40-45000 and will have about 450 disposable income after everything
Posted: Sat Jan 30, 2010 3:52 pm
by kallis3
Hi Mitsu.
Would it not be better for your wife to declare BR as well now that the house is being repossessed?
Posted: Sat Jan 30, 2010 5:31 pm
by Adam Davies
Hi
I would say that bankruptcy would be a sensible option as your wife will only pay into this for three years at a maximum of 70% of disposable income. This is very different to the 5 year, 100% disposable income for a possible IVA.
Is there a reason that she would prefer not to go bankrupt ?
Regards
Posted: Sat Jan 30, 2010 5:40 pm
by kallis3
Mitsu is already bankrupt, so I would think that BR would be the sensible option now the house is being repossessed.
Posted: Sat Jan 30, 2010 6:58 pm
by mitsu9
hi she is happy to go bankrupt as that will be the end of it.it was only that she mentioned the possibilities of a iva.as im still br it probably is the easy way out.
Posted: Sat Jan 30, 2010 7:22 pm
by Adam Davies
Hi
I would go down the bankruptcy route and bring a close to it all. The danger of the IVA is that something will go wrong in the five years and your wife will be unable to finish it. At least with bankruptcy the debts are written off at the start and do not need creditor approval
Regards