A couple of years ago, could have easily got over a £100K so there is at least 25K equity.
Now however it is possible the current situation has worked in our favour in that 75% of equity may well be about £10K - £11K anyway.
Being in an IVA, there has not been that much spare income so the house has fallen into disrepair a bit so could well be at the lower end of the scale for a property of it's type. I'd really hate having to sell up further down the line and not make enough from it to pay off the re-mortgage. I pay about £400/month on my mortgage and £460 into IVA.
If I sold up my house tomorrow for say £90K, there's my £7.5K deposit back and £15K equity leaving me with £22.5K. I make a F & F of £13K and wife and I are left with £9.5K in the bank which would more than cover Estate Agents etc and a bond on a rental. Bank the rest and weather the storm. Or have I got my sums wrong???
A decent detached 3 bed with a garage could be rented for under £600/month here so with IVA history, I'd still be over £200/month better off.
Looks good from my reading and provided your IP couches your offer in the right way I don't think you'll have a problem - it all hinges though on whether your house can be sold and at the price you indicate now.
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.
David Mond wrote:
Looks good from my reading and provided your IP couches your offer in the right way I don't think you'll have a problem - it all hinges though on whether your house can be sold and at the price you indicate now.
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.
Cheers. Furthermore if I remortgaged to borrow 12 - 13 K, I woul dbe paying back something more like 30K over 5 years wouldn't I? That's not including my current mortgage
I would not only check the terms of your proposal, but also the Chairman's Report - as any modifications that were submitted by creditors and accepted by you would override the IVA proposal. If there is no mention of this, I would say that you are required to raise the figure quoted in the proposal,.
MelanieGiles wrote:
I would not only check the terms of your proposal, but also the Chairman's Report - as any modifications that were submitted by creditors and accepted by you would override the IVA proposal. If there is no mention of this, I would say that you are required to raise the figure quoted in the proposal,.
Thanks Melanie
The report is enclosed with the summary that only refers to £10.5K.
There is no reference to re-mortgage in the modifications. In fact I don't think the creditors submitted any modifications.
Claues 3 says "The following modifications were proposed and accepted by the Debtor" then goes onto the actual modifications. No refernce to anything submitted by Creditors
Modifications can only be submitted by either yourself or the creditors. So if your report refers to "the following modifications" I assume that these would have been submitted by creditors.
So long as there are none relating to the equity in your property, the proposal terms will stand.
MelanieGiles wrote:
Modifications can only be submitted by either yourself or the creditors. So if your report refers to "the following modifications" I assume that these would have been submitted by creditors.
So long as there are none relating to the equity in your property, the proposal terms will stand.
Which will be 75% then I guess. Looks like global recession may have done me a favour in a bizarre way. We have been paying 52p in the pound for 37K of debt. Would have hated to end up shelling out more. Looks like proposal to continue but put house on market is way forward.
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.
Melanie. Just mentioned this in PS to email I just sent you regarding my possible settlement proposal.
Received a letter from my IP today - a reminder about Equity release - and it begins
"As per the terms of your proposal, you are required to re-mortgage your property and introduce a sum of £10,500 into the Arrangement for the benefit of your creditors".
I wish there was some consistency in their correspondence - 75% or £10,500, what's it to be??
At least it goes on to mention possibility of convening a creditor's meeting to approve an extension.
I think I will update IP tomorrow with a quick email advising them to expect a proposal based upon sale of my house rather than a re-mortgage tomorrow.
May I ask, would it be bad form to advise IP of my intention to sell in such a fashion? It's not as if I need their permission is it? I just need to tell them of any gains from sale while in IVA right?
I think it would be very sensible to advise your IP of your desire to sell the property, as this could avoid an unecessary creditors meeting. Whilst we will help you as much as we can on here, there is nothing better than advice directly from the person representing you.
