What is my next step

[ben_]

I have 3 properties and £140,000 worth of debt. I haven't a job as I've been self employed for a year, but have lost money. What is my next step, a job, an IVA, my properties are on the market to be sold, will they be repossessed. I've missed my first mortgage payment this month, I'm not sure what to do?

[MelanieGiles]

Hi ben and welcome to the forum

The mortgage companies for your properties are entitled to commence possession proceedings against you when at least three mortgage repayments have been missed. So you are a couple of months away from that.

If your self-employed business is never going to pick up, then looking for a job to provide you with instant income has to be the ultimate priority. Your houses may sell eventually, but they will not produce instant cash, and I assume that you are being supporting by ongoing lines of credit at the moment.

An IVA could serve to hold the position (based upon the sale of your properties) - and at least interest would not continue to accrue - whilst your properties are properly marketed. How much equity do you have in all of them?

You could also consider bankruptcy proceedings, if the equity is insignificant, but this may hamper your search for alternative employment in certain industry sector. What line of business are you in?

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

[ben_]

Thankyou so much for your advice Melanie, I went to your website but it seems to be unavailable? I have one house that's sold, but not completed with about £30,000 equity, and the other two have at least £20,000 equity each. My line of work is retail sales management. I have a job offer in recruitment but didn't accept it as I REALLY wanted my own business, I just guess it's not for me as it hasn't worked at all over the past 12 months. I have NO money coming in, am now £2,000 over my overdraft limit and have missed one payment of £1,000 on one of the houses. Would the next step be best to talk to yourself? Thanks again, Ben.

[MelanieGiles]

Thanks for letting me know about the website Ben. I will get my IT guys to look at that first thing tomorrow morning.

If the houses are likely to sell over the next 12 months, you could put forward an "Asset based" IVA based upon the respective sale proceeds being offered to creditors.

This will not affect your ability to find employment - indeed it will take away the stress of the debts leaving you to completely focus on re-establishing yourself.

A relatively simple piece of work to put together, so if you wish to contact me directly via the website (which will be operational shortly) I would be more than happy to talk you through the process.

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

[ben_]

Melanie, you are a ledgend! And so late in the day too! I will contact you as soon as possible, it really is a relief to know there are people out there who can help!

[ben_]

Just one more thing I have thought of that I would like to ask, I have borrowed money from family and friends, does this get taken into account, I'm guessing not. Is this a situation where I need to pay them back from my disposable income (which I presume will decrease to practically zero if I do an IVA). I have a car, flat screen TV, a computer, would these need to be sold to raise capital? Thanks again for your time!

[MelanieGiles]

Yes Ben - your friends and family debts must be included within the IVA. With regard to your family debts, as these are deemed to be associated creditors under insolvency legislation, they may be asked to forego their right to receive a repayment by the other creditors, but both friends and family have the power of votes to cast at the creditors meeting and, assuming that they will vote in favour of your proposals, they can be quite valuable to you.

Your other items will not be taken into account as they are of relatively low value. And a car of up to £8,000 in value is generally acceptable expecially if you need it to attend job interviews.

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

[ben_]

Hi Melanie, just so you know, if not already, your site is still down at the moment. Looking forward to speaking with you, Ben.

[MelanieGiles]

Ben

Just been told by the IT bods that it is back on line - so if you can fill out the brief details we can call you to discuss issues directly.

Sorry about inconvenience - where would we be without IT these days?!

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

[ben_]

Thanks Melanie, I'm getting a call in a few minutes. By the way, after watching your interview, you don't sound like you're from Haverfordwest???

[MelanieGiles]

Well born in Derby, but lived in Wales since the age of three. Grew up and educated in Haverfordwest, moving to Cardiff to study accountancy. They call Pembrokeshire "little England beyond Wales" so I guess we don't sound too Welsh!

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

[ben_]

Hi there, doubt I'm going to get a reply from anyone at this time on a Bank Holiday Weekend, but here goes...

I have lots of direct debits coming out of my account, the first one being missed this month being my mortgage payment. I get charged £35 everytime this happens, and that's just from my bank. I figure it takes 6 - 8 weeks to set up an IVA, maybe a little sooner, do I call my creditors in the meantime and explain my situation? I'm not sure if the bad news is best coming from my IP?

[tracy.h]

Hi Ben,normal advice when entering into iva change bank account to a bank who are not one of your creditors,stop paying all creditors,some companys tell you to maintain token payments some dont depends on what there policys,im sure melanie will give you the correct information soon.
Have a good bank holiday weekend

[aguise]

Hi Ben
I had charges added to mine but it is added to the iva dont worry if anyone rings just give them your ref no etc,. As soon as I was told to stop paying creditors I cancelled all the debits except the ones for the loans to the bank itself, I just let them default, obviously utilities etc I moved to my new ac. Once cancelled they cannot charge you. The creditor may, but again just adding to the iva .
Hello and welcome to you. Hope the forum helps to find your solution I amsure it will.

Ang

[thebear29uk]

Hi Ben and welcome to the forum.

Nobody available on a Bank holiday Weekend? We are all here as we dont have the credit cards to pay for expensive weekends away any more. Lol.

Seriously though you will be amazed at how late at night/early in the morning somebody will be prepared to answer any of your questions so post away.

As Ang says if you miss payments on your unsecured debts the fees get added in to the final amount agreed for the IVA. Far better than being charged by your bank for returned Direct Debits. You need to open a new bank account as soon as possible. Do a search on here for "bank accounts" as there are pitfalls with certain affiliated banks and people like HSBC and First Direct closing accounts if you are in an IVA. Make sure you pay your essential bills such as gas/elec, council tax, rent, tv licence but wait to be advised about your unsecured creditors by whoever is dealing with your proposal. By the way, if its Melanie you are in safe hands.

Best wishes

Dave