Hi, I’m currently on a DMP via Stepchange but have had an offer from my brother to help towards a lump sum should I try for a F&F IVA. I really don’t know whether this type of IVA is the way to go, as I have a rental property I can’t equity release from due to inability to remortgage. If I go the route of IVA would they’d turn it down thinking they could get more by making me bankrupt? Although the property is in my name it is a “joint” venture with my partner - essentially he has the mortgage for the house we live in in his name (he’s debt free and not involved in my personal debt) and I kept the rental one in mine, but he would lose out unfairly if mine were to be surrendered in a bankruptcy. Any advice?
As yours is not a straightforward situation I would suggest a chat with Stepchange, who know the ins and outs already. There is no reason I know of why you cannot approach your creditors with F&F offers without invoking an IVA, although you will be proceeding without the protection an IVA provides, you will also be avoiding the formal inclusion of the rental property. However, in either case, you might be awakening the creditors to the potential of BR.
In this DMP, they still have the freedom to enforce collection or BR, however, this is, for them, an expensive process and, under the current agreement they stand to get back the whole debt eventually. Under BR, they might not do and with a F&F they won't (depending on all the relative figures). Some of them might be happy to agree an end point with a F&F.
It is impossible to call I am afraid, especially on the limited information we have.
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
A lump sum IVA could be possible depending on the figures involved.
The costs in BKY are high so this often makes an IVA more attractive - your brother would likely need to give you a sum equal to, or better than, what creditors would get in BKY to make the IVA attractive enough to vote in favour of it.
In bankruptcy your bother could potentially buy out your interest in the property from the Trustee.