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Posted: Tue Mar 25, 2014 4:09 pm
by Headinsand
30k of debt between 6 creditors, house valued at 180k with 135 outstanding, should I......
Sell house and rent and pay debts off or stay in house and take an iva.
Posted: Tue Mar 25, 2014 4:30 pm
by Foggy
I would suggest you have a chat with a couple of insolvency professionals to explore all angles in detail.
Selling up now could see you renting for quite some time before being able to get back onto the property ladder ( should you so wish).
An IVA will see you need to release equity in any event under the new protocols, unless you use an IP who doesn't intend to use the 2014 Protocol.
Posted: Tue Mar 25, 2014 4:41 pm
by Michael Peoples
It depends on whether you want to retain the property or keep a good credit file. It also may depend on how the debts are split and the ownership of the property.
As Foggy says take some free advice befor eyou decide.
Posted: Tue Mar 25, 2014 4:42 pm
by Headinsand
2014 protocol ?
Posted: Tue Mar 25, 2014 4:46 pm
by soreloser
Posted: Tue Mar 25, 2014 4:48 pm
by Michael Peoples
This just says that are to obtain a refinance up to 85% loan to value if possible and a secured loan is a tool which can be used. However, it actually clarifies other issues in that the mortgage term cannot be extended nor can it go past normal retirement age.
There have been some scare stories about the new protocol terms and conditions but they are not all bad. We use R3 standard terms and conditions anyway and have never used the protocol ones although we do include the better elements as standard within our proposals.
Posted: Tue Mar 25, 2014 5:24 pm
by Headinsand
The credit file is pretty much shot anyway but it's the thought of coming off the property ladder and also we've still got to sell it, it could take a few months for that to happen
Posted: Tue Mar 25, 2014 11:59 pm
by MelanieGiles
One of the key things to ascertain is whether you want to see your creditor repaid in full, or just brought under control. And how important is staying in that property to you?
I suggest a chat with an insolvency practitioner directly, who can help you to understand the advantages, disadvantages and implications of all options - and answer the many questions that you probably have in determining the right way forward.
Posted: Wed Mar 26, 2014 9:42 am
by Michael Peoples
If you can afford the mortgage payments on the property and you wish to stay there an IVA may well be the right option. Do not worry about protocol as very few IVAs lead to the sale of the property of additional unaffordable borrowings.