What can i do to protect our family home?

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by colin997 » Mon Jan 08, 2018 2:33 pm
Hi I have given a second charge to our business factors there arent any repayments stated but they insisted on it as a guarantee.
Things may well go pear shaped with them leaving a debt owing of 50k if that happens what can I do to protect our family home we have 3 young children will an iva stop them being able to call in the charge or am I buggered?
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by Foggy » Mon Jan 08, 2018 4:03 pm
An IVA will not thwart a secured loan / charge. There is a possibility that, by dealing with your unsecured creditors in an IVA, you could free up enough to service the secured debt. But all depends on the figures involved. If you get clobbered with a £50k debt to tyhe factors and no way of servicing it then they can call on their security -- the house -- ranking behind the first charge. However, if the property was sold there is a real possibility that the first charge wouldn't be covered, let alone the second, so they would not benefit --- making them more likely to seek a better arrangement for all concerned.

You need to speak with an Insolvency firm for specific advice and I would recommend a smaller outfit who would look at this individually, rather than the " IVA factories" who wouldn't have a clue.
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Lisa Thomas
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by Lisa Thomas » Tue Jan 09, 2018 12:09 pm
As Foggy has pointed out an IVA only deals with your unsecured creditors - the secured creditor will continue to rely on their security.

Is there equity in the property?

Do you have other unsecured debts? If you were able to deal with them one way or another would this help you pay the secured creditor?
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Shaun Vickery
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by Shaun Vickery » Wed Jan 10, 2018 3:38 pm
Hi Colin, that's a pretty tricky situation but bear in mind that the reason they will have asked you to offer your property as security for the loan facility is to ensure that they get their money back! I can't really dress it up any differently but I agree, I'd certainly suggest some professional advice, perhaps from one of the experts who post here?
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