Advice on selling

[Leolover]

Hi
It's my first post here and would like some advice please. Husband and i are thinking of taking out an IVA, but one thing is bothering me. The house we live in, its worth around £230000. Our mortgage outstanding is £105000.
If we go ahead with the IVA and then move to a Park home in 2 years time, would this affect our IVA. We were thinking of selling our home, paying up the mortgage and with the equity buy a park home. So there wouldn't be any cash left, but we would not be paying out on a mortgage?? Any advice would be gratefully received[:)]

[MelanieGiles]

Hi there and welcome to the forum

How much are your debts? If you were to sell up and move to a Park Home, this would still represent an asset in your estate which would have to be taken into consideration.

[Leolover]

Sorry, forgot to mention that, we have debts of around £75000. With 8 different creditors. Thnaks for reading

[MelanieGiles]

Therein lies the problem. You are not really insolvent - as you have assets sufficient to cover your debts, although you are insolvent on the basis that you cannot pay your creditors as they fall due.

Why not sell up, pay off the debts and buy a smaller property with a smaller more manageable mortgage?

[Leolover]

Thanks for your advice. We had thought of doing that, but all that takes time and our creditors are hassling us? So do you think that if we applied for an IVA it would not be accepted on that basis?

[MelanieGiles]

You could put forward an IVA based upon returning 100p in the £, so long as you were serious about selling. This would save the ongoing interest being charged, but you would also have to fund the IP costs on top of the debts - so it would be a bit of a balancing act.

[size5]

If you are not thinking of moving for another 2 years, you may also wish to give serious consideration to looking at a temporary DMP to get your payments on an even keel in the meantime, and then looking to clear the debts later via a full and final settlement, where your creditors may well give you a decent discount on what you owe at that point.

You may wish to visit www.iva.com and have a look round there, talk to 2 or 3 providers and then make your own mind up from there.

Regards.