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A friend has debts of approx £24500, a mortgage and home improvement loan of approx £47000 and a house valued at approx £100000. What is the consequence of the potential ? It seems unlikely that the debtors would accept a composition under the circumstances.

tc-b

Welcome to the forum, your friend has the potential to redeem all existing debts of £24,500 by remortgaging their property so as far as I can see they are not insolvent, Hope this helps-Tony

This person is not insolvent and therefore not eligible for an IVA or for Bankruptcy. The best advice would be for this person to look into the option of either consolidating this debt with a loan or a remortgage. If this person is assest rich and cash poor, i.e. has not got the disposable income to consolidate then sadly they would have to look at selling their home.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Gentlemen, thankyou for your advice. Would it make any difference if her salary is too low to give a remortgage of £75000?

Your friend does need to ensure that she can afford to repay that mortgage - if not then a sale of the property might be a better option.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Your more than welcome.

Sadly it would not as ultimately she could always sell her home to pay the debt back in full. She could try to come to an informal agreement with her creditors whereby she could pay as much as she can afford each month rather than the contractual payment.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Again, thanks to all for your advice.