www.iva.co.uk

Hi Guys,

Been reading lots of info on here and have just started the process of going into an IVA with one of the companies recommended on here.

It will be an interlocking IVA and I'm rather worried about it to be honest due to the low payments vs high debt

i.e. £150 per month.
I've been told it's possible, I just can't stop worrying that my creditors would rather push for bankruptcy as we have around 70 - 80K of equity in the house (That I can't currently release as I've tried)

Is there any one on here with debts around the 100K that is only paying around £150 per month?

Thanks for any help.....Guess I'll probably be on here a lot over the next 5 - 6 years

Creditors are likely to accept that figure but given the amount owed could you not look at a lump sum IVA with the money obtained via a secured loan?

There are a couple of companies that might be able to help.

PS the amount owed is not unusual but obviously there will be pressure going forward to increase payments plus reclaim PPI etc. to be paid into the IVA's.

It may be acceptable depending on the creditors and other factors such as your age. You will be offering equity in month 54 and if you cannot raise it the IVA will be extended. We have done similar IVAs in the past and many go through.

Hi lifenoteasy,

Unfortunately I've tried to re mortgage and to get a secure loan and have been turned down for both

That would have been my preferred option and would probably have paid back more!

Thanks Michael, That's good to hear

Look up Shaun or Ryan under Ask the Experts.

Your agreement (depending on who you go with) is likely to state remortgage or secured loan at month 54.

I'm not a great fan of the latter but if it gets you out of the IVA sooner (or even never having to go into one) then its worthwhile talking to them.

Thanks lifenoteasy,
Can't hurt to try!

Hi - welcome to the forum Katie. £35k of equity in each Bankruptcy estate would be eaten up in Bankruptcy tax, repossession costs and general costs. Your proposals will include a comparison in BKY verses IVA. I presume your IVA contributions are also for more than 3 years, which is all you would pay in Bankrupty if an Order was set. Look at your comparison from your IVA proposals- that is what creditors should look at to decide - what is the comparative p/£ between BKY and IVA?

Hi Lisa,
Thanks for that. I don't have a proposal yet (I'm currently collecting all the required documentation together) So I was just curious (And concerned)

I see - in which case your Nominee will work all of this out for you. If they do not think the IVA gives a reasonable return to creditors, they will not recommend it. They have to confirm it is fit, fair and feasible to recommend it and that mainly depends on what creditors are estimated to get back if the IVA is not approved.

There has been another post by someone who had a similar amount available v equity in property.

The issue is what happens at month 54 i.e. at 2019/20.

What you do now decides what might happen then which was the practical experience of the other poster.

If you go into the IVA and you want to buy yourself out the equity you have is likely to have a significant impact on what can be offered.

Keep reading up and come to a decision that is right for you.

Thanks Guys. I have no issue with re mortgaging in 5 years time if it's possible (As long as the repayments are fair, which seems a standard rule)
I would have liked to re mortgaged and tried a F&F IVA but just can't borrow anything (I've just e-mailed Ryan & Shaun)

Basically my position is.....I'll do whatever I need to do but REALY want to keep my house (I have 6 kids so feel it is important).
I guess I'm just worrying about it all

You have little to lose by proposing an IVA based on 60 months plus equity release. If rejected you are no worse off and if accepted you know you have a legally binding agreement with creditors and you will be aware of your obligations under that agreement. Personally I would try the IVA and see what happens.