We have serious debts including credit cards and a secured loan which amounts to circa £80,000 on credit/store cards plus the secured loan of circa £85,000 what are our best option?
Hi Carole, Welcome, you have turned to the right place. There are a number of professional on this site who will be along to advise. Do you have any assets or equity in your home as this may determine the correct advice for you
Philx
Hi and welcome
There are three ways to del with unaffordable debt, bankruptcy an IVA or a Debt Management Plan. The right solution for you will depend on many factors but one point to note is that the secured loan can't be included in an IVA or DMP, unless it is no longer secured on an assett.
You could deal with your other debts by way of a DMP/IVA as long as you can continue to pay your mortgage and secured loan.
Can you give some more details ?
Regards
andydavie wrote:
Hi and welcome
There are three ways to del with unaffordable debt, bankruptcy an IVA or a Debt Management Plan. The right solution for you will depend on many factors but one point to note is that the secured loan can't be included in an IVA or DMP, unless it is no longer secured on an assett.
You could deal with your other debts by way of a DMP/IVA as long as you can continue to pay your mortgage and secured loan.
Can you give some more details ?
Regards
Our secured loan is obviously against our property - our current mortgage is around 418k plus the secured loan - we are due our PPI returned to us next year 24k but I was wondering of we could loose the PPI payment before then and do n IVA for our other debts we are currently paying out £1500 - £2000 per month we do not have any equity in the house - we did but the prices have really tumbled.
andydavie wrote:
Hi and welcome
There are three ways to del with unaffordable debt, bankruptcy an IVA or a Debt Management Plan. The right solution for you will depend on many factors but one point to note is that the secured loan can't be included in an IVA or DMP, unless it is no longer secured on an assett.
You could deal with your other debts by way of a DMP/IVA as long as you can continue to pay your mortgage and secured loan.
Can you give some more details ?
Regards
There is no equity in the property actually with the secured loan probably negative by now but we can pay for the mortgage and the loan but need to urgently sort the rest.
As Andy states we need full details of everything from what you and/or your partner owes (singularly and/or jointly), Amount of the secured debt on home and details of your other assets (if any) and your income and expenditures.
You need to have a chat with an IP and give him/her details of all your personal and financial circumstances and particulars.
Visit www.iva.com for reviews on firms and practitioners and select one or two to have a chat with. They will give you
the most appropriate advice and it is free.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
As Andy states we need full details of everything from what you and/or your partner owes (singularly and/or jointly), Amount of the secured debt on home and details of your other assets (if any) and your income and expenditures.
You need to have a chat with an IP and give him/her details of all your personal and financial circumstances and particulars.
Visit www.iva.com for reviews on firms and practitioners and select one or two to have a chat with. They will give you
the most appropriate advice and it is free.
Our income is around £6400 and the mortgage and loan costs £3200
Sounds like you are in a very similar situation to us.
We have been told that because our payments on secured borrowing are more than 40% of our income (ours is 56%) we will have to sell the house if we go down the IVA route, event hough it is in negative equity. But have alos been told that we will havet to sell it if we go BR.
Still gathering info before we decide which is the best option for us - IVA or BR.
There is so much info available and every case is different.
Good luck.
"It's better to be in control on a small budget than to be out of control on a large budget."
I think Jan (Kallis3) said hers was 50% of income and she never had a problem. No doubt if Jan reads this she will tell you herself just incase I have got it wrong
Hi
Have a word with a few people/companies to see what they have to say.
The 40% rule is very flexible however creditors may feel that you could rent for far less than £3200 and hence free up more money for creditors each month.
Regards
Hi Angelc
Why would you HAVE to sell it if bankrupt ? Only the OR can advise on this as it will be their decision. A third party may well be able to buy the beneficial interest for as little as a pound plus costs from the OR.
Do you feel that you can afford 56% of your income on housing going forward ? are you on interest only mortgage ?
Regards
andydavie wrote:
Hi Angelc
Why would you HAVE to sell it if bankrupt ? Only the OR can advise on this as it will be their decision. A third party may well be able to buy the beneficial interest for as little as a pound plus costs from the OR.
Do you feel that you can afford 56% of your income on housing going forward ? are you on interest only mortgage ?
Regards
Not sure if you got my replay - my computer shut down - but quite a lot of the loan is PPI what if we drop that it should take us below the 40%. I am a bit confused about the acronyms being used - can you help and which companies should I talk to?
andydavie wrote:
Hi Angelc
Why would you HAVE to sell it if bankrupt ? Only the OR can advise on this as it will be their decision. A third party may well be able to buy the beneficial interest for as little as a pound plus costs from the OR.
Do you feel that you can afford 56% of your income on housing going forward ? are you on interest only mortgage ?
Regards
"It's better to be in control on a small budget than to be out of control on a large budget."
Our mortgage and secured loan is 50% of our income, and as Elv5 says, it was never questioned with us.
I do think that you need to phone one or two companies up to take advice from them before making a decision.
Go to www.iva.com and you will find a lot of companies on there who come recommended.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
