www.iva.co.uk

is an IVA right for me? I am at present trying to sell my house because I can no longer afford the repayments, I currently have just over £30,000 in unsecured loans/credit cards and by downsizing my house, this would sort this out. The problem being, in the current housing market I am unable to sell the house to date. I can only afford the mortgage repayments up to the end of December and currently looking at ways to get around the problem. Any ideas

Hi Kevin and welcome to the forum.

If you were in an IVA, would you be able to afford the mortgage? What sort of disposable income do you have?

You say you are trying to downsize, were you thinking of buying or renting? If renting, you could always look at bankruptcy.

Forgot to ask, is there any equity in your house?

An IVA may well be a solution for you, but there will be others which are worthy of consideration as well. It might be sensible to have a chat with an insolvency practitioner who will be able to explain all of these to you in order that you can make a reasoned choice about what is best. How much equity do you currenty have in the property?

The equity in the house is an estimated £64,000 at the moment and is currently on the market. The biggest problem is that I have had a drop in income of about £10,000 over the past 12 months which is why I need to downsize the house in order to get back on track with things.

It sounds to me as though you will be able to pay off your creditors in full once you manage to sell your house.

It would be worth you speaking to an Insolvency Practitioner, such as Melanie Giles in order to get some advice as to the way forward.

Perhaps a debt management plan would be a good move for the moment until you get an offer on your house.

If you are entitled to all of that equity, you are not involvent and as Kallis says you would be able to pay your debts in full. Some form of DMP in the meantime does seem a sensible suggestion.