I am divorcing my wife and she is still resident in the house I want to sell. We have not paid the mortgage for 3 months (£700 per month); I cannot afford the mortgage. Approx value £190,000 of which approx. £70,000 is equity. I have unsecured debts of approx. £11,000 on 4 credit cards and £6,000 on 1 loan. I am employed by my Limited Company pulling £500 per month as I do not have much work at the moment. I do not want to go bankrupt as I want to go in to a new partnership on a new business, but it is on hold until I know what to do about my current financial situation. Would an IVA work for me, or is there anyway that I can make them take the money out of the equity of the property.
I am not a professional expert but it appears from the above that youre not insolvent with 70K in equity and only around 21K debt. You would have to be insolvent to enter an IVA.
As the mortgage has not been paid for three months, this now gives the mortgage company the opportunity to apply for possession proceedings against you, which will eat into the equity you have available, but ought to still leave enough for you to clear your debts in full once the property has been sold.
Why not invite your creditors to take a legal charge over the property on the grounds that they will be paid in full once the house is sold, and simply cover the ongoing interest payments in the meantime?
