Hi
As advised we had our house valued on Friday to gather the information needed to go forward down the iva route and we were absolutely gutted to find that we are now in negative equity. Yes, we knew that house prices had gone down recently, but didn't think they'd gone as low as they have.
I have finally accepted that we cannot carry on the way we are, borrowing from one place to pay another and have signed the authority to act today, it will be posted first thing tomorrow.
Does anyone know if the fact that we're now in negative equity will help our case or go against us? For personal reasons the thought of losing our home would just be too much to bear and I certainly wouldn't be able to live with it.
Terrified that doing this will mean that phone calls will start and half term is coming up soon, so our 16 year old will be at home on his own for some of that time. As he's been through so much in the last two and a half years (the loss of his 18 year old brother, followed by the loss of his grandmother) we haven't told him, nor do we want to but he does know that money is very tight.
Setting up an account with Nationwide but they won't give us a debit card at the moment so that could be interesting! Not quite sure how we'll manage so are thinking of getting a prepaid credit card. Any advice on that?
Thank you all for your help, support and advice, it really helps, especially when I'm feeling ashamed and desperate.
Pap, please dont feel ashamed - you should be proud for facing up to your debt!
Our house is in negative equity and thats quite common I've discovered. It was a shock to us to see how much it had dropped, but we have no intention of selling and so it will work in our favour, as hubby is facing BR.
Lots of posters have pre-paid cards and someone will advise which one to get. Strange that nationwide won't issue a debit card....how are you supposed to access your money?
Be aware though that a lot of them do have monthly fees.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Julie - they give you a cashpoint card, which you can use in any cash machine.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
We were declined by Nationwide but Abbey gave us an account with debit cards within minutes. We are model customers now and get £6/7 a month interest each month, which is novel!
Going back to some threads a few months ago - with a debit card, it is technically possible to go overdrawn, i.e. at an automated petrol pump, so I think that may be why they do it Julie.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Pap, with regard to the phone calls, why don't you put your phone on to call forward. This is what I do, and I never miss a call from creditors. My Mob is always on vibrate/silent and I always call them back. This way you have control, because you instigated the call when you call them. I know this is more expensive but it works, I seem to have had far less hassle than some that post here.
To use call forward on your telephone push: *21*(MOB NUMBER)# and then to cancel,which I do after 21.30 #21#. Your mob also gives caller display so you can still answer "friendly calls".
Good luck.
Sorry one other thing you can do, is when you receive a missed call from a number you don't know,is to go onto "whocallsme" web site. Enter the number and 9 times out of ten it will tell you who called.
Then you can call then back when you're ready and not off guard.
Hi Pap - the negative equity is no problem and won't detract from your proposed IVA. In fact the negative element will be added to your liabilities on your SofA.
If you want a pre-paid debit card there are a number of sites you can visit to get one - some of them offer a billing facility. Good luck and don't worry.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I would recommend the Tuxedo card. I had one until I got a debit card and had no problems. I paid £4.99 a month to use it as many times as I wanted, but there is also a pay as you go option. I think Tuxedo are also introducing a direct debit facility.
As other posters have mentioned, the negative equity in your property will not affect your application for an IVA, and if property prices do not rise much over the next five years, hopefully there will be no equity to have to raise during the final year.
As you are so worried about your application, could I urge you to get the paperwork back to your IP as soon as possible so that process can commence.
Thank you all for your advice and support. I know I worry about anything and everything but I suppose that's the way I am and I'm too old to change now ! lol
Paperwork has been posted today so, as long as Royal Mail are working with the snow everywhere, it's finally moving. Just got to gather all the rest of the data now but that's underway. (Note to self - must get organised!!)
Having posted the forms already seems like a bit of a relief, so fingers crossed!
Thanks again - and no doubt I'll be on again worrying about something else before too long.....
P x
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
