www.iva.co.uk

Hi to all forum members
looking for some help on which way to go forward.
I have total unsecured debt of 61k. with house value at 170k and outstanding mortgage of 132k.have been advised that i have no disposable income to do iva. Owing to income multiples i am not in a position to remortgage at this time.I have been advised to look at bankruptcy. If i decide on bankruptcy the house will obviously go and we will have to go for rented property which is o.k but the cost of renting will be £250pm more than our current mortgage. This would mean that instead of breaking even, after bankruptcy we will be minus £250 from day one. I cannot see a way forward.

Hi there and welcome to the forum.
I am not a technical expert and will not attempt to answer, but want to wish you all the best. Someone will be along with the knowledge to assist. Quite often you can reach a point where you can see no obvious way forward but there always is.

Ang

Hi Unsure

You've come to the right place to get the advice you need. As soon as the experts are on they'll be able to advise the best way forward.

Good luck. I hope it works out ok for you in the end.

Thanks for the warm welcome. I can not believe i have let things go this far before i woke up to the problem. Everything a bit up in the air at the moment as i only let wife know the full extent last week - didnt want to worry her. Trouble is now she knows is worried and very angry.

It is worrying obviously but much better that you told her. I think you will find her to be a great strength once the anger fades. It is a difficult time but you will get through it, I have seen so many people so down, and as they move forward to a solution they become positive and so much happier.

Ang

Hiya unsure, just want to welcome you to the forum.
Just a thought but you say that renting would cost £250 more. Are you still trying to pay your creditors?

Hi chris.g
I was advised to pay all creditors token payment of £10 which i have done but now have been told to make it 50p next time until i decide what to do. Very embarrasing to offer 50p. We budgeted and believed we had £209pm disposable income,however when creditors criteria is used it wipes out disposable income to £5pm.

We had nothing left but after 'tweaking' we managed to get £13 disposable income, enough for £1 for each of our 13 creditors as a token payment. Don't feel embarrassed about offering 50p, that's all you can afford! What you need to do is a income and expenditure EXCLUDING your creditors. That way it will give you an idea of what will be presented to the OR when you file bankruptcy. You could check to see if you might be eligable for housing benefit by checking on here....
http://www.direct.gov.uk/en/MoneyTaxAndBenefits
/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018926
hope this helps,
xx

Thanks Chris
Figures are excluding creditor payments. I will check with council on monday as their web site not available today.

hi unsure and welcome!

try not to worry there will be a way forward and you have done the best thing by telling your wife. you will get lots of help and advice on here - hang on in and there will be a solution for a way forward

keep yer chin up


barb [:)]

Hi Barb

Thanks for welcome. Very pleased to find this forum although i think it is frightening to see just how many people are in a similar situation. It is nice to know there is so much support out there.When i realised i was in too deep, i realy did not know where to find good advice.Thanks again.

hi unsure

i know what you mean - this forum has been a god send to me, i buried my head for so long and then one day it finally hit me and i was just petrified - just by taking steps to seek help towards finding a solution for a way forward helps tremendously

you will be ok - there lots of us that are either starting this journey or furthrt along the route - but either way we are here to support each other

keep ploddin hun - we will survive this journey together and hopefully come out the other side better people!

barb x

Hi unsure

If you have resigned yourself to the fact that the house will have to be sold, why not put it on the market now and offer an IVA to your creditors based upon you paying your full half share of the sale proceeds to creditors once it eventually sells. This would avoid a bankruptcy, and leave your wife with her half share of the equity to supplement your rental shortfall and meet the costs of relocation and removal.

Hi Melanie
Thankyou for your reply. Unfortunately my wife is not resigned to any of this at the moment.I am trying to sort things out the best way i can to move forward. If i were to opt for the bankruptcy option would my wifes part of the equity be swallowed up by the O/R?With joint equity of approx 38k could my wifes brother purchase my beneficial interest for 38k to enable us to stay in the house and would this be enough to sort things out as it is a lot short of my 61k unsecured debt?

Thankyou for your advice. unsure.

Your wife's equity would be intact in a bankruptcy scenario - I assume that she has no debts of her own? - and her brother could acquire your beneficial interest and make an offer to creditors based upon that sum in an IVA, which would be a far better way forward for you all than under bankruptcy proceedings.