I really dont know which way to jump!!!

[freelili]

One more thing that might be worth considering, if you can raise 20K. Ask your creditors if they would accept 30 per cent of the balance that you owe, it might be worth a try and you would save on IP fees and avoid the need for an IVA. An IVA would offer you protection from your creditors, work towards debt freedom on a particular day in time, IF ACCEPTED. It would do no harm to find out what your creditors are likey to accept in the meantime.

Good luck

LILY

[steven.m]

Good idea, is that something we do ourselves, go to our creditors independantly and ask what they would take as settlement figure?
If we have this equity in our house, how do we release it and are you aware of any charges we should or should not get charged..sorry loads of questions

[freelili]

Yes it is I am doing this myself shortly. If you offer 25 £ in the pound (25 per cent of a debt) rather than asking them, it might work for you. The amount they will accept will depend on what creditors you have. For instance HSBC 40p Provident 25p, also, if your debts have been sold on, they may accept less. (does this make sense). This is usually IVA criteia but its worth a try. Given that they are only getting £1 per month and wouldnt get much in BR, you have got be in with a chance.
I do not know how you release it, sorry, I would imagine a secured loan or increase from the BS. Its been 8 years since I had a mortgage we sold the house it and split the equity at the end of the marriage. (put it in trust for my disabled son, I said that I would put a gun to my head if I ever touched it, and I have come close) You may not need 20K, it would just increase your mortgage repayments I guess.

You could try the CAB with this problem, spectrum, equity, settlement etc. I believe they may be able to help you.

good luck and keep posting.

LILY

[scaredkez]

hi steven i can only go along with lily on this one, i did approach them and they gave me a cock and bull story on how they were able to help clear peoples debts if they couldn't get an iva still within a 5yr period without taking further credit, as they knew something no one else did with legislation, sorry lily i didn't pay them anything it was when he asked for up front fees before he could discuss how i showed him the door, i would have done as i would have believed him had a not been stung already by synergi, luckily i had seen watchdog but had already booked a home visit with them
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[freelili]

sorry kerri, i was frantically searching for the post, I had remembered the bit about up front fees

LILY

[steven.m]

thanks for all the advice guys.
If you are out there Melanie or anyone else who can help with me getting away from Spectrum (boo !!) I would be grateful, has anyone else done it too??

Also if I can raise some equity in my property does anyone know who would be best to approach to do this considering my credit rating is in the doldrums and a huge increase in mortgage repayments would be crippling.

what a head ache!

[jamesfalla]

Steven

Given you are in a DMP, I suspect that there are is no reason that you can not pull out of the agreement you have at any time. You just stop making the monthly payment and that is that. I do not believe that Spectrum will be able to claim you owe them any further money (especially as you paid then £1500 up front).

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[MelanieGiles]

Hi steven

To get away from Spectrum you simply need to write to them and tell them you are terminating your DMP. As your creditors are only getting £1 each, then this should have little or no impact upon your situation.

I recommend Tony Parsons of All Morgage Products for mortgage advice. His mobile number is 07970-438874.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[steven.m]

thanks for the advice James..and Melanie you are truly a star.

its obvious that my DMP isnt worth the money I am throwing at it..why i didn't realise earlier I don't know.

One thing that does concern me is my inability to really pay any more than i already do with my current mortgage..I may be being silly but surely I cant get any more equity out of my house without the monthly mortgage payment rocketing to a figure I just can't meet.

If that is the case then what is my next option if any????

[MelanieGiles]

As I said - look at the interest only option of consolidating your mortgage and secured loan. This should enable you to reduce your payments, but obviously as you will only be paying the interest your capital balance will not be reduced. This could work for a couple of years until you get back on your feet.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[steven.m]

thanks again melanie, one more question if you dont mind.

If i do manage to secure around 15-20k out of the property how to i go about offering it to my creditors?

Do I go direct to them and offer a pence per pound as a full and final settlement or is an IVA potentially the best option.

Goodness, I will be an expert in no time, nothing like bitter experience!

[MelanieGiles]

There are advantages to both routes. If you try directly then you may be lucky and get away with not paying any professional fees - therefore more money available for creditors - but it could take for ever and a day to broker individual deals depending on the number of individual creditors you have.

By doing it through an IVA, your creditors all have to make a decision on a specific day in time as to whether they are accepting or rejecting. Your case will also be dealt with by specialist IVA voting teams within the banks, whereas it can be a nightmare trying to find a decision maker using the informal route.

I suggest you see how much could be raised, and importantly whether you can pay back a higher mortgage, before proceeding further. You must certainly not make your financial situation any worse.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[steven.m]

Thanks for the advice, will take the first steps by contacting the Tony Parsons as you suggested to see if he can help in any way.

If the higher mortgage repayments are too much of a stretch is the most likely outcome bankruptcy??

[MelanieGiles]

Depends on whether you want to continue paying £1 per month to creditors or not. Let's advise on the way forward once we have explored all options. One step at a time!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[steven.m]

just a quick update. have contacted Tony Parsons at All Mortgage and he is taking a look at some possibilities...also had a letter today from spectrum saying the monthly amount i pay them is going up to £54 from £38..apparently i can afford to pay more as my wife has got a small pay rise from her 20 hour a week part time job,

Don't you just love Spectrum!