dont know which way to go forward some help please

[garmag]

hi,dont know which way to go forward and need some help please.I have had an iva rejected and the appeal rejected to due to our old favourite northern rock saying no to the proposal.of my and my wifes total debt of 71k northern rock were owed around 30k joint making them majority verdict.the others including lloydstsb,alliance and leicester and halifax agreed.

my property is mortgaged with northern rock alos at 194k and is valued around 200k i think,we have only lived here for 8mths.my main questions are do i now think of going bankrupt as the iva route is no good for me ? am i likely to lose my house over say 10k equity although my mortgage payment is 950per month.as the main debt is in joint names i am assuming we would both need to do this if we did it ? i have 3 kids aged 13,10 and 2.does it make a difference.there are obviously loads of other questions that i cant think of.what should my next step be in this situation

[MelanieGiles]

You can either go bankrupt, or enter into a Debt Mangement Programme. I have to say that I am rather suprised that you bought the property only 8 months ago, when you were also in substantial unsecured debt. Was any form of affordability exercise done on your circumstances by the mortgage broker who assisted you in purchasing the property> And is the Northern Rock debt a "Together" loan? If so when was this taken out and over what period.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
You may find that NR will now try to secure the unsecured loan and this may well do you a favour as it will put you in negative equity and if you then declare bankruptcy you will be able to buy the interset in your house for a £1 plus fees.
As long as you can pay the mortgage and newly secured loan you will be able to remain in your house.
The remainder of your unsecured debts will be written off in bankruptcy
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Andrew Graveson]

Hi garmag,

I'm sorry that you have found yourself in this position. As a dad I can fully understand the worry about the family home.

If keeping your home is your main priority I think Andy's and Melanie's comments are spot-on. You need to establish whether bankruptcy or a DMP represent your best route forwards.

Is your property mortgaged for 194k or do you have a mortgage and unsecured loan from Northern Rock totalling 194k (the Together product)?

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk