we'e in a situation that we see no solution

[scooby1]

I am married and we have managed to get ourselves into a situation that we see no solution. We have £25000 unsecured debt, but also £90000 secured debt. We own our house but have only equity of £25000 left to pay any outstanding credit. We are in desparate need of help and we are currently looking into selling our house and using whatever equity is outstanding to pay off debt. An IVA is a great solution but i understand that secured debt cannot be included into this. If we sell our house, does the debt become unsecure and if so could it be then included into a IVA?

[mikebdomain]

Cases like your have been known where a property was sold without enough returned to pay the outstanding secured, but these days I expect the sale would be stopped due to insufficient funding by the acting solicitor. So, in a nutshell you would be unlikely to be able to sell your house and not pay off the secured borrowing.

If you did manage it, then technically the outstanding amount would be unsecured.


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[mikebdomain]

Have you considered remortgaging to 90% and then offering your creditors the balance as a full and final settlement. I am not sure that it would be enough, but I am sure the other forum members will have more of an input shortly.

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[Adam Davies]

Hi
If I read your post correctly you have 25k of equity and 25k of unsecured debt.Technically,if this is correct,you are border line as to whether you are insolvent or not.
As Mike states you could remortgage and see if your creditors will accept an offer to settle your debts or you could sell up and go into rented and use the proceeds to settle the vast majority of your debt.
How much disposible income do you have when excluding unsecured debt repayments ?
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Andy Davie
IVA.co.uk Spokesperson

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[MelanieGiles]

Are you actually saying that you have equity of £25k before or after taking account of the secured loan?

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

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