equity in our home

[john.wd]

I have one question. Between my partner and I we have £50,000 worth of debt and are currently managing the payment but with a struggle. Yesterday my wife was turned down or a consolodation loan as was I the previous month, neither of us can now get credit at a reasonable rate.

Anyway my question, our outgoings in total are just over £1000.00 per month and I was wondering if we went down th route of IVA would the equity in our home have to be taken into considertaion?

Many thanks

[angela18]

hi john and welcome to the forum, i'm almost sure that equity would be taken into consideration, if an IVA is entered. I'm sure an expert will be along shortly to advise you further on this. I'm sure i'll be corrected if wrong

[debbiw]

Hi John, and welcome to the forum. Yes normally in an IVA your creditors would expect you to release equity at the end. How much equity do you have at the moment?

[mike.s]

Hi John,
I'm no expert and thankfully I did not have to go down the IVA route so I can't give any personal advice on that, but from what I have read from other posts I believe the equity would be taken into consideration in an IVA. Everyone's situation is different and there will be a solution for you, but you will need to get some advice from an expert, and there are some great ones on this forum who will be able to give you some good advice. Melanie and her team are wonderful and you will get some honest, sound, help and advice from them, and they will help you through this. I robbed Peter to pay Paul for so long, thinking things would get better, but all that happens is you get deeper and deeper into debt. Just my view, but taking out more debt to pay current debt is really just delaying the ineviatable if you are already struggling now. Contact Melanie and get some advice so that you can start to sort things out and move on with your life. This forum is amazing and you will get some fantastic help and support, it was a lifeline for me, so keep posting and let us know how you get on. Hope it all works out for you and your partner, but make the call and don't put it off.
Best wishes
Mike

[MelanieGiles]

Hi there

Your property will need to be revalued during the final year of the IVA, and you will be required to raise additional lending based upon 85% loan to value. This will firstly be used to repay your existing secured lending, and any balance (subject to a £5,000 deminimis level) will then be paid into the arrangement. Your new mortgage payments are to be limited to affordability of no more than 50% of your then monthly IVA contribution.

[john.wd]

To All, I would like to thank you for your contributions, as stated I am managing at the moment but as an IT contractor the contracting world is a little precarious at the moment. I do antiscipate that the debt will be paid in the next 5 years but I do need to look at options should the worst happen.

Again I would like to thank you all for your insite.

John