www.iva.co.uk

is it possible to have an iva if i own two houses- one i live in, the other is rented out and makes a profit. im currently on a dmp and the company have told me i cannot have an iva due to owing two houses ( both mortgaged)

Hi,

Owning two houses does not prevent you from entering an iva but I don't know how creditors will want you to deal with the house you don't live in. If there is equity, they may request a sale.

Have a chat to another couple of IPs - there sa listing with client reviews at www.iva.com and the experts who post on this site are fantastic.

P.S. Welcome to the forum and good luck x

What ridiculous advice to give you. Today I completed an IVA proposal for a lady who owns 56 houses, so I think that you are fine with the two - so long as the investment property is making a profit, aqdn therefore contributing to creditors rather than costing them.

thankyou for your reply, there is very little equity in the rental property and not much in our house we live in. the company i am on a dmp with have estimated 2034 until we are debt free. knowing this is putting alot of pressure on my marriage/ family life, and my wife and i are feeling quite depressed alot due to the situation. i enquired with my dmp company- which is a very well known company about an iva as i feel this would be more suitable due to the amount of debt and having 5 children to support and there exact words were- ' no its not possible due to you owning two properties'.. i feel a little more positive knowing that is not correct advice

That is a long DMP Anthony and it doesnt sound like very good advice!

Seek some alternative advice directly from IPs, with 5 children another 22 years to pay of the debt is a very long time indeed.

Let us know how you get on

What ridiculous advice and who the hell suggests a 20 odd year dmp,a life sentence in jail would be over sooner!!!

Speak to another IVA firm and see what they think your options are.

Paul

thankyou so much all, i will enquire later today when i finish work, will keep you all updated

Hi Anthony - I am so pleased you found this forum to find out exactly what your real options are. Whoever is looking after your DMP should be retrained in advising on debt solutions as to say what they have and let you believe a DMP is your only option for 20 years is terrible.

As Mel says, as long as the second property is not costing you money each money to retain then its existence has a positive effect on your DI as it generates a profit. Hopefully you have secure tenants in there that will give a continuous rental income stream or have plenty of tenants available if they move out.

Speak to 2 or 3 companies to get further advice and see where you feel most comfortable moving forward. As you can see, companies can vary in many ways including their approach, success rates, customer service, fees and flexibility.

Hopefully the light at the end of the tunnel can now seem a possibilty for you instead of somewhere in the dark distance!

If you have a buy to let mortgage with Mortgage Express it is possible that they would appoint an LPA receiver as it seems to be their policy. Other secured lenders are easier to work with so get another opinion.

do i need to find an iva practitioner near where i live ?

No, you can visit www.iva.com and go from there.

By the way, who is dealing with your DMP?

Regards.

Not at all. Most things are done over the phone, by post or email. Ring a couple of firms and go who you feel comfortable with.

cant thank you all enough, things have been pretty dull these past few months.. current dmp is with cccs

I knew you were going to say CCCS somehow.

I must be psychic....

Regards.

I kind of thought that myself but did not want to speculate on an open forum as there are others giving similar poor advice. We know the CCCS cannot deal with the self employed which as a landlord the poster is so perhaps just easier to put him into a DMP. It also returns more money to their funders the banks and their commission over 20 years would be a lot more than they would get for referring the poster to an IP firm who could act for him.