www.iva.co.uk

Hi Everyone. We entered our IVA in Jan 09. At the end of Jan 09 I lost my IT job. I was forced to take a job as a building site assistence which was paying 75% less than what I was originally earning Fortuntaly with help from family we managed to continue our full IVA payments untill May 09. We then requested a 6 month payment brake.This was acecpted and payments ceased untill Dec 09, where I was still working as a building site assistant. The 6 month brake was added to the duration of our IVA. Our full payments commenced and again with help from family we met the dec payment in full. I fortunatly got back in to full time IT work on Jan 18 2010. I contacted my IP and advised that we would be making the full payment for Jan 2010, and once I had recieved my first full month payslip we can then arrange a variation to the IVA. We met the full payment in Feb. I contacted my IP yesterday and looking at our current i/c & Exp would only be able to afford 1/6 of what the original IVA amount was. My IP stated that our creditors wouldnt accecpt this. We then re jigged the figures and further cut down monthly o/g and went back to my IP with a higher monthly payment, but this is still only 1/4 of the original IVA amount and he said again that its unlikely that our creditors will accecpt this. It was left that I would again look at our monthly o/g and see if we could trim any further.

After reviweing again its looking like we cant realistically commit any further money to the IVA, and am considering B/R.

Can I ask anyone inc the IPs on this forum if B/R means we will loose our home? Its extremely likely that we are in Negative Equity, and have built up arrears as we have been on half payments for the past 11 months.

Should B/R be the only way forward then so be it, but I hust need to know our home will not be taken away?

any help or advice will be much appriciated

Many thanks[:)]

FB

Hi Frank, sorry to hear about all of your problems.

I hope you don't have to go BR, but if you did, then the OR wouldn't be interested in your house if it was in negative equity. Someone would have to buy the beneficial interest for £1 plus £211 court costs.

You would need to keep making the mortgage payments though.

Perhaps if you did go BR, you would be able to catch up with the arrears on that?

Hi there and thanks for the advice. How does the BI process work? without the IVA we would be in a position to pay the mortgage, but I want to understand the BI process before we go any further. Also with regards to getting a valuation on th eproperty is this somthing that we do and provide to the OR and are we duty bound to have more than 1 valuation?

Your correct about the arrears as we would thsn be in a position to chip away at this or even have the arreres lumped on to the existing mortgage.

You should speak to your IP who ought to be able to give you advice about the merits of bankruptcy, along with the implications on your assets.

Your home should be safe if it is in negative equity, but do remember that a Trustee in bankruptcy has up to three years to deal with the dwelling house and is not obliged to accept the quick £1 beneficial interest transfer if they feel that by hanging on to it more money could be made if it appreciates in value.