Hi my questions are!. We have worked out that our debts just about out weigh our equity in our house(just) would that go against us getting a iva? £58,600 debt, 57,000 equity.Should we get seperate bank a/c and everything changed like salary paid into new account etc when we really dont know if we would be approved for a iva? Many thanks Mr B.
Hi Mr B and welcome to the Forum.
If you are unable to pay your creditors without incurring further debt you should seek some free advice from an insolvency firm. It is probably wise to open a new bank account regardless of what you decide to do as currently your credit file would be quite good and finding new banking facilities would be easier than later.
The equity situation would need to be looked at but is the figure achievable in the current market? Furthermore each individual is looked at and it is not uncommon to find the bulk of the debt with one party while the other can continue to pay their debts.
Speaking to an insolvency firm will answer all your questions and good luck.
I would definately get that property valued on a forced sale basis. You may be disappointed at the result, but unless you are planning on moving house values are largely academic and as everyone knows the housing market is pretty deflated at present.
If the equity available is smaller, you could look to offering a five year IVA, with a potential equity release at the end of the term if there is funding available at that time for people subject to IVAs (doubtful based on current indications).