Please help as i'm rapidly losing the will to live

[sinking_further]

I owe around 35K to two creditors (Both unsecured). I can see little way out without making myself homeless.

1. Is an IVA suitable and if so how does it affect the equity in the house (around 40K).
2. Yes I could sell the house but my income does not allow enough income to rent else where.
3.My avilable surplus each month is betwwen £50 and £150 PCM
4.Neither of the two creditors have as yet gone to court even after 2yrs.
5.How is a Charging Order obtained ?, Can it force the sale of the house ?, Can it be avoided ?.

Please help as i'm rapidly losing the will to live.
Thanks

[aguise]

Hi there
I will try to give some advice.I do not think an iva would not be suitable as you have enough equity in your home to pay your debts in full, but this could I think be done by way of a remortgage rather than selling your home.Welshboy hopefully will advise on that ,he is in the industry. Dont despair there will be a solution and someone will be along with more advice. Six months ago I was like you not knowing what I was going to do, now though things are still hard at times the debt worry is gone and life is so much better without that.

Ang

[Welsh Boy]

sinking-further

Welcome to the forum, You state you have only 2 creditors I do believe you need somewhere in the region of 5 creditors to effect an IVA. Have you thought of writing to your creditors and asking them if they would accept a lesser amount as a one off full and final payment to close both your accounts, you could then possibly re-mortgage the property and capital raise enough to clear off the debt. You feasibly have enough to repay the debts in full. Hope this helps-Tony

[MelanieGiles]

Hi sinking further and welcome to the forum

I am afraid that with just two creditor an IVA is not really an option for you. They only work generally with four or more debts.

I would have thought you could afford to get a 95% loan to value re-mortgage, which would enable you to substantially repay those debts. Mortgage interest is much cheaper than loans and credit cards, although the additional mortgage payment will probably absorb all of your surplus income. At least you will only have one financial commitment to worry about.

Take advise from WelshBoy (Tony Parsons) who would be able to get you some mortgage quotations on a completely free of charge basis.

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

[sinking_further]

Thanks for the replies,
They will accept a lower amount but will not freeze interest, MBNA alone are are twisting the knife to the tune of £250.00 PCM.
The house is worth around 120k, with a mortgage of 78K, Two questions, With my credit rating is anyone going to lend me that amount of money ? and how (If its possible) would I get them to accept a lower amount as full settlement
I can't at this point see a solution so any help is welcome.
Thanks for your help.

[sinking_further]

Also, Just to make things worse
The mortgage side is confused as well because the house is currently on a "buy to let" mortgage (It's my only propery) with early redemption fees of around 4k. Can a second mortgage be arranged ?.
Thanks

[tracy.h]

Hi please dont despair ,i see welsh boy[tony parsons] has posted you already hes the person that you need to talk to hes the mortgage expert,hopefully he can advise you regarding your mortgage options.
We are all in debt so you are not alone hang in there there is always a solution,i no its a desperate time right now but help will come,you will find a way forward,goodluck i hope you find a way to move on you are doing the right thing by sorting your problems out,goodluck

[MelanieGiles]

Why is your house on a buy to let basis? Those loans are generally more expensive than normal mortgages for a primary residence. Whilst you may pay a bit more for a higher mortgage, as a result of your credit rating, it seems that you have sufficent disposable income to afford the payments and I think it will be fairly easy for you to find a lender to assist you - use Welshboy (Tony Parsons) he is the expert.

You can get your creditors to accept a lower settlement by simply ringing them up and asking them. Many people do this every day, but you will need to be patient as sometimes the banks can take a long time to make their minds up.

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

[Welsh Boy]

sinking-further

You should be able to remortgage to 90% of the value of your property (but I would need further details to ratify this) so you could feasibly borrow £108k based on a value of £120k taking into account redemptions etc you should have circa £24k to use to offer your creditors. You asked 2 questions 1- would a lender lend to you based on your credit history? If you want to give me further information I will try and get an agreement in principle for you based on borrowing the £108k so yse lenders would possibly lend but further info is needed and secondly how would you get them to accept that amount as a full and final settlement? Write to them and explain the situation you may be able to find a solution by doing so. Hope this helps-Tony

[sinking_further]

The mortgage is a buy to let because in happier times, Perhaps misguided times if you like I had more than one house. i guess i got greedy.

[Welsh Boy]

There are still schemes that will allow you to take 90% of a B2L. Tony

[sinking_further]

Tony,
Let me know what info you require to move this forward.
Just so you know, Part of my income is a car allowance around 5k a year. The down side to is that the car must not be older than 5 years (and guess what...). So if a re-mortgage is possible it needs to include this. On the up side, the car HP payments are £256 PCM so this may actually help.

Also (Sorry about the bitty info) I also get all petrol paid for if that makes any difference.

My income for the tax year to April 2007 was 26K. As I say around 5k was the car allowance.

Having looked at other peoples situation I would like to apologise to everyone for the inital "woe is me bit". It seems my position is almost hopefull.

Thanks for your help, I'm feeling happier already

[Welsh Boy]

If you want to email me on - antony.parsons@btopenworld.com I will let you know what is needed. -Tony

[aguise]

Hi there please dont apologise, all our siruations are different but all are as important ,I told you someone would give you a solution, just pleased you feel better.

Ang

[thebear29uk]

Hi Sinking-Further

You are in safe hands with Tony. He has just sorted out my mortgage and is one of the nicest blokes I've met in a long time.

With regards to getting your creditors to accept a short settlement it seems strange to say it but asking them at the beginning usually gets a swift no but stop paying them for a few months and they seem to want to settle. However do be careful as they can always seek to put a charging order on your property.

regards

Dave