Good Evening
Please can you help me i am interested in a iva I am currently paying via a dmp plan with StepChange £200 per month ,
I have debts of £40k I own my property mortgage remaining is £184,000 value of home is £245,000 I live with my long term formal partner and 18 month old child is this correct that half the equity my partner would have interest/share in so my share would be £30k approx ? Or would the value be based at 85% of my homes value so it’s only valued at £208,000 less the £184,000 outstanding mortgage leaving £24,000 equity devided by 2 = £12,000 ? As I owe more than I have equity I have myself or would my creditors look to make me bankrupt ? - 9 creditors all high street lenders to name a few are Barclays, Halifax , hsbc , Zopa ect I seem to be getting mixed answers form various iva firms some say yes no problem and some are saying no creditors will push you towards bankruptcy because Barclays , Halifax are managed by a company called Watch and they have to work a certain way with rules regarding an Iva ? Surely this is very expensive and the creditors would be better in an Iva as you would attempt to remortgage in he 5th year of an Iva to give the creditors as much back as possible and a court would surely see the creditors being unreasonable if I’m willing to pay back via an Iva the best way possible my partner has been on medication for many years for anxiety and with my very young son would a court make us all homeless as it would also be very difficult to rent a property with a bad credit score
Many Thanks
James
Hi James. On the face of it an IVA might be the way forward, but you do nned to speak to an IP for detailed examination of all of the circumstances.
With regard to equity they will assume all of the equity is yours unless your partner is on the deeds, in which case it will be 50/50.
BR is rarely the course of choice as the return to creditors is often less than they would get in an IVA and it will boil down to a commercial view -- reasonableness doesn't figure in whether a creditor will accept an IVA or not --- some will not even bother to vote, whilst others will refuse any IVA as a matter of policy (fortunately very few take this line).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy
Appreciate the response please do you recommend any IP? Tried a company called Swiftdebt but they were too over pushy and very confident to get me on an Iva they said I would not have any problems at all getting into an Iva but I have not read any good reviews about them so it put me off I tried another company called Creditfix but they said i would not pass the next stage they sent this message too me .....
I've had a senior look at your case and unfortunately I'm being told your case wouldn't pass the next stage. Due to your situation with the mortgage / equity in the house, the creditors would push you towards bankruptcy. This is because they would benefit more you doing this
- I don’t understand one company says one thing another says something completely different? Who do you trust to go with ?
If that equity is, or can be assumed to be, all yours then there could be an issue with some creditors, particularly HMRC, eyeing up the equity. CF are an IVA factory and deal best with standard, no issues, situations ... it is a lot easier when all the peas in the pod are the same size!
I cannot specifically recommend any one firm, but my personal choice would be the smaller / medium firms that will treat you as an individual, rather than a grain of sand on a very large beach. Possibilities include, but are not limited to: The number on the top right of the screen and speak to Keith White, or, one of our regular contributors - Lisa Thomas from Neville and Co. or a firm that has consistently good reviews - McCambridge Duffy. Were I caught in this trap again, those would be my first three choices, but you need to see who you would gel with -- an IVA is an intimate financial relationship over 5 or 6 years, if it is to work to it's full potential.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Why do you believe your partner has an interest in the property?
This will be key to the best options open for you, as without you have significant equity in your property to repay the debt so creditors might not favour an IVA unless the outcome is as attractive, or more attractive than Bankruptcy.
