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Tr00per

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Post by Tr00per » Mon Nov 29, 2021 5:09 pm
Hello

My 2nd creditors meeting is Dec 2nd after a 14 day postponement.
I really feel like they are going to make me bankrupt because the equity in my house is almost exactly what I owe.

Has anyone had an IVA accepted even if they could pay the debts with their equity? I'd love to hear positive stories.

My IP says creditors will get very little back if they force bankruptcy. I don't understand why since I owe 62k and my equity is this or maybe a bit more

Tr00per

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Post by Tr00per » Mon Nov 29, 2021 5:37 pm
Actually, even stories of people who have been forced into bankruptcy and a house sale I'd like to hear, so I can be prepared. I can't think about anything else right now 😢

Foggy

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Post by Foggy » Mon Nov 29, 2021 6:19 pm
A forced sale of a property, such as in bankruptcy will usually be at a far lower value than the open market value. From this are also deducted the auctioneer's fees and the OR's fees.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Tr00per

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Post by Tr00per » Mon Nov 29, 2021 6:24 pm
Mon Nov 29, 2021 6:19 pmFoggy wrote:
A forced sale of a property, such as in bankruptcy will usually be at a far lower value than the open market value. From this are also deducted the auctioneer's fees and the OR's fees.
Thank you. Is this quite unlikely to happen? I'm wondering if bankrupcy is seen much across this forum

Foggy

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Post by Foggy » Mon Nov 29, 2021 7:23 pm
It is not something I can recall having seen on this forum, where rejection has forced BR. And BR these days is not as harsh as it used to be --- once upon a time it was regarded more as a punishment than as a means to recoup the debt. These days it's about the money and returns from BR are not as good, generally, as those possible from an IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

kallis3

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Post by kallis3 » Mon Nov 29, 2021 10:13 pm
I agree that I have not seen it either. It costs a lot for creditors to make you BR so not usually worth their while.
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

Tr00per

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Post by Tr00per » Mon Nov 29, 2021 11:03 pm
Thank you that gives me a bit of hope.
The worst thing about bankruptcy is the thought of loosing my house when I have done so much work on it and my wife loves the house. I'll be so glad to get to the 2nd and have a decision hopefully

kallis3

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Post by kallis3 » Tue Nov 30, 2021 8:23 am
Got everything crossed for you!
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

bowline

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Post by bowline » Tue Nov 30, 2021 11:40 am
The only creditors that tend to go for bankruptcy are business creditors, HMRC or, sometimes, your local council. Consumer credit creditors (loans, cards, overdrafts) dont as it costs them a lot and they may get little back unless you have a lot more equity than debt. The Official Receivers fees in a case where the sale of your house is forced can be very large, £20000, £30000 or more. And as it is your home, so you have 3 years to sell it, so creditors wouldnt get any money for a long while anyway.
Payplan would know if any of your creditors typically do this.

It sounds as though you have been lent a LOT of money that wasnt affordable for you. If the IVA is rejected again, set up a debt management plan to get the interest frozen and look at making affordability complaints about all the debts - you could get a refund of interest which will dramatically reduce the balances.

Tr00per

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Post by Tr00per » Tue Nov 30, 2021 9:51 pm
Thank you all.
I feel reassured that forced bankrupcy is a rare thing. Although I am prepared for the worst just incase. 62k is a lot of money to have spent on credit, I don't know how I ever thought I'd reasonably pay this amount back, I gave my wife control of the finances when we were already in deep even though I knew the day would come when we couldn't pay. Then it was something my wife blocked out until she could no longer pay one card with another. We I'll check back on the 2nd Dec with the creditors decision. My wife and I are desperately hoping not to lose our home. If we do, we have each other and the gumption to never get credit again (not that we could now anyway) 🙄😁

kallis3

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Post by kallis3 » Tue Nov 30, 2021 10:26 pm
Your story sounds just like ours apart from the fact that we owed £80k! I also kept things from my husband until such time that it all came out after a phone call from one of the creditors which I could not hide from him any longer. Thankfully we got through it.
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

Tr00per

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Post by Tr00per » Tue Nov 30, 2021 10:40 pm
Tue Nov 30, 2021 10:26 pmkallis3 wrote:
Your story sounds just like ours apart from the fact that we owed £80k! I also kept things from my husband until such time that it all came out after a phone call from one of the creditors which I could not hide from him any longer. Thankfully we got through it.
Hello, thank you for this. I'm so glad to hear you got through it. Do you mind me asking how much you paid monthly for 80k? Our offer was £170 but I've asked the IP to add a further 20 which they'd put aside for savings. I can save by doing overtime

kallis3

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Post by kallis3 » Wed Dec 01, 2021 9:05 am
As we were both on good salaries (me) and public sector pension (hubby) our payments were over £400 a month and we had the 12 month extension as well. Things have changed these days and much lower payments are acceptable. We also had a secured loan on the house (you can see how much c**p we were in) so hopefully things will go your way this time.
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

luluj

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Post by luluj » Fri Dec 03, 2021 4:25 am
How did your meeting go yesterday ? Was your iva approved ?
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

Tr00per

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Post by Tr00per » Fri Dec 03, 2021 7:27 pm
The IVA was approved. I'm so shocked and relieved, a new chance.. And they have not put a charging order on the house, my house will be paid off just a few months after the final iva payment which will last 6 years. I can't believe it 😁
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