I applied for an IVA

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m.72

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Post by m.72 » Mon Jul 05, 2010 8:25 pm
I applied for an IVA and they come back to me with £16000 on top on my debt and I end up lossing my house, how can this be?
 
 

kallis3

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Post by kallis3 » Mon Jul 05, 2010 8:47 pm
Hi and welcome to the forum.

Not sure I quite understand your post. What was the £16,000 for? Was it fees?

Were you not able to keep up with the payments?

Can you give us a little more information.
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.
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m.72

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Post by m.72 » Mon Jul 05, 2010 8:56 pm
The £16000 are supervisor fee, I have not accept anything yet so no missing payments
 
 

kallis3

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Post by kallis3 » Mon Jul 05, 2010 8:59 pm
Why are they saying that you will lose your house?

What company have you approached?
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
 
 

m.72

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Post by m.72 » Mon Jul 05, 2010 9:17 pm
my Debt is £53000 the company is Clear Debt, they said I will have to pay around £200 a month for 4 years and them sell my 3rd of the house (the rest belongs to my ex and my family lives there) and pay £62000 which it does not make sense to me. thanks
 
 

kallis3

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Post by kallis3 » Mon Jul 05, 2010 9:25 pm
I think that what Cleardebt mean is that you will be expected to release some of your equity in the house by way of remortgage in the fourth year of your IVA.

You will never pay more than the total amount you owe to your creditors plus fees.

If you can't remortgage then you usually find that your IVA will continue on for a further period of time, usually 12 months.
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
 
 

MelanieGiles

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Post by MelanieGiles » Mon Jul 05, 2010 9:47 pm
How much is the house worth, and what is the level of the outstanding mortgage? How did your IP anticipate that you would raise this money?
Regards, Melanie Giles, Insolvency Practitioner
 
 

m.72

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Post by m.72 » Tue Jul 06, 2010 10:27 am
They have stimated the house will be around £300,000
 
 

m.72

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Post by m.72 » Tue Jul 06, 2010 10:30 am
the mortgage is £45,000. the IP anticipates that I will remortgage the raise the money
 
 

Michael Peoples

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Post by Michael Peoples » Tue Jul 06, 2010 11:20 am
Why not sell your share of the house now to the other owners and clear your debts in full?
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

m.72

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Post by m.72 » Tue Jul 06, 2010 11:24 am
The other owner is my ex and she lives there with my 3 children, there is also a court order preventing me from this until my youngest is 23 at least I don't want to do this to my family
 
 

Michael Peoples

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Post by Michael Peoples » Tue Jul 06, 2010 11:37 am
Given that the property is to be sold when the youngest is 23 would it be an option to remortgage now on an interest only basis to clear the debts. Your ex would need to take legal advice but there is a possibility that the property is at risk now anyway as creditors could go for bankruptcy and try and get the equity sooner.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

m.72

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Post by m.72 » Tue Jul 06, 2010 12:35 pm
not a possibility, I'm in management debt agreement no interes are added to my debt and it will take 10 years to pay off, I'm looking for a better deal
 
 

Michael Peoples

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Post by Michael Peoples » Tue Jul 06, 2010 12:47 pm
If you are in a DMP with the interest frozen it sounds like your best option is to stay there. If you propose an IVA there will be fees to be added[ although the £16,000 you quote seems very high] so it seems the wrong thing to do.

Furthermore, if you can remortgage to clear the IVA in year 5 you will be borrowing £62,000 at adverse rates meaning you could end up paying back up to double what you borrowed.

I see no reason why your current DMP is not best option for you especially if interest has been frozen and there is no legal action. In my opinion there is not a better deal out for you at this time.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

m.72

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Post by m.72 » Tue Jul 06, 2010 1:18 pm
Thank you
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