TO IVA OR NOT

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kj923

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Post by kj923 » Mon Mar 24, 2008 4:22 pm
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Hi, I have 62K debts over 8 creditors. I have entered into Financial Management, but have figured out that this will take around 20 years to clear at the current rate. 2 of the creditors (so far)have taken out CCJs - which really scare the pants off me. I have around £220 excess per month, and around 30K equity on the house. I will take any advice - I dont really understand how these things work, I know that I pay an agreed amount over a fixed period of time, possibly having to remortgage at some stage - but how much? All of my equity? if I have to pay more mortgage then I will have less free income. Please help with advice or your experience. Thank you very much.
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Adam Davies

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Post by Adam Davies » Mon Mar 24, 2008 4:33 pm
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Hi
In an IVA you will be required to release all your equity upto 85% loan to house value.The increased payments must not be more than 50% of your IVA payments and when you remortgage[month 54] your IVA repayments will reduce by this increased amount.
Have a chat with a couple of IVA providers and see what they have to say
Regards
Andam Davies
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MelanieGiles

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Post by MelanieGiles » Mon Mar 24, 2008 5:17 pm
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As your disposable income is quite low, this will work to your advantage when you have to remorrgage, as the additional borrowings taken out will be limited to costing no more than 50% of your then disposable income - so an IVA may well seem a better prospect that the current and longwinded DMP you seem to be in.
Regards, Melanie Giles, Insolvency Practitioner
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kj923

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Post by kj923 » Tue Mar 25, 2008 8:14 pm
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Thanks both for that - I was quite worried that an IVA would be harder financially, but I will look harder at it now.
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emma_t

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Post by emma_t » Tue Mar 25, 2008 8:30 pm
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Hi kj923

I would suggest taking advice from an insolvency practitioners sooner rather than later as these things will only get worse.
Have a look on www.iva.com for reviews, but in my humble opinion you can do no better than Melanie Giles who has answered your post. You will be talked through everything to make sure you are making the right decision.
Also an iva will typicaly last 60 months and you will be legaly protected as opposed to a 20 year repayment plan which offers no protection legaly or with freezing of interest.

Good luck[:)]
Be positive & look after yourself, there are more important things in life than debts....

Best Wishes

Emma x
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