iva??

[rob.b]

my wife and i have struggled along for the last 12 months in informal agreements and with a debt management plan with the cccs, we were hoping the former income we had would return but we have waited for too long and think an iva might be appropriate now. can anyone explain please how final figures are calculated? this stuff on tv about little known govt legislation that can remove X amount of debt ect?. what if your disposible income only amounts to £200?
and we were sent some CCJ paperwork in december which we returned but have heard nothing what of the debt that that related too? and does a ccj normally take this long? i am due to recieve a small gratuity soon how could i use this to help our debt situation? pay off some of the smaller debts to have less creditors or pay it to the largest debt to hopefully improve chances of any voting should we go down the iva route?

rob bignell

[MelanieGiles]

Hi Rumpole and welcome to our forum

Can you give us some more information first:-

1 How much do you owe in total
2 What is your disposable income
3 How much do you expect to receive from the gratuity (and what does it relate to?)

I will then perhaps be able to advise you a little better.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rob.b]

we owe about 37 total i work but wife has invalidity benefit on a debt mangmnt prog at mo with cccs with disposible income of £55 but that will change as we have remortgaged saving £200 the gratuity relates to a pension i will recieve at the end of jan age 50 of £105 per moth i still have a reasonable income from my current job which will continue. the gratuity is £5000 but i want to utilize 4k of that to catch up om maintenence etc that has fallen behind and a few other things

rob bignell

[MelanieGiles]

Rob

There definately seems to be an IVA in there. Do you owe anything to HSBC or Northern Rock - and if so how much.

Also how much is your property worth and how much do you owe on your mortgage?

Your suggestion re the gratuity seems reasonable, so long as it is properly explained to your creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rob.b]

our house is worth about £200,000 we remorgaged in the summer on the recommendation of cccs witha company they put us on to for £141000 they told as the time this was about the max i could have with my earnings/age etc we dont owe to hsbc or northern rock regarding the gratuity, i have had fencing and a wall come down in the bad weather which will cost around £1200 to fix some decorating and carpets to replace and here's the dodgy bit..... i want to put my son thru a course of driving lessons and get him his driving licence for his 17th birthday/late xmas present what do you think?


rob bignell

[MelanieGiles]

I think that you ought to consider re-mortaging again and pay those debts off in full. A 90% loan to value mortgage would do it, and would cost in the region of £975 assuming an interest only payment at 6.5APR. You can do this on a self-certified basis, ie you just confirm that you can afford the repayments, and your income and other debts do not get taken into account. I am surprised CCCS did not suggest this to you in the summer. Do you now have a redemption penalty if you come out of the new mortgage early?

Do bear in mind though, that you are taking on a much larger commitment, which is secured against your home, but as you are not technically insolvent an IVA is unlikely to be accepted by creditors. I would not continue with a debt management plan if I had the opportunity to settle, and you might even be able to bargain discounts with your creditors for early settlement, and thus face borrowing less.

I can recommend a good mortgage broker if you want to explore this as an option.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rob.b]

yes there is an early redemption fee without digging out the paperwork i think its around 4k in the first 5 years we were told we had maxxed out with this mortgage so that clause didnt seem a problem at the time will post more tomorrow thanx rob

rob bignell

[rob.b]

hi my wife and are currently on a DMP with cccs and are coming to the end of what we see as a reasonable period of attempting to regain our former income. there is still no light at the end of this tunnel so we have been thinking about an IVA i have sought some advice from forums and it has been said that we are not insolvent and an IVA would be rejected. it was also suggested that as we have 60K in equity in our property we should remortgage and pay off our debts this way. bearing in mind an IVA would cost us £200 per month minimum and would mean we were then 'beholden' to the IVA/IP for any extra income for 5 years if we could find a remortgage for the extra cash and still be the same or less than current situation plus £200 for an iVA wouldnt this be a better way to proceed?

rob bignell

[MelanieGiles]

My previous advice stands! I don't know why you are doing a DMP in the first place.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rob.b]

could you forward details of a good mortgage broker? thanx


rob bignell

[MelanieGiles]

The chap I use is Tony Parsons and his mobile number is 07970438874. He specialises in adverse credit mortgages, but do be sure to shop around and get a couple of quotes before deciding.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk