IVA Advice Please

[bazza1982]

Hi,
I wonder if i could get some advice.I currentl have debts totalling around £50,000, these have amounted mainly due to stupidity and nieveity on my part, paying credit with credit etc.
The time has come where i need to get something sorted out.
Curently i have a house and the mortgage costs me £400 per month
Unsecured debts cost me around £1,600 per month.
My monthly take home pay is only £1,200 per month, a big gap!!!
Is an IVA suitable for somebody in my situation as i do not really want to go bankrupt, i would like to keep my house if at all possible.
Thanks in advance for any advice given

[Adam Davies]

Hi Bazza
What is your house worth and your current outstanding secured lending on it ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

And could you also post some details about your available disposable income on a monthly basis, before any payments to unsecured creditors.

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

[bazza1982]

I have a mortgage with HSBC it is 100% mortgage brought for 91,000 now worth 110,000 however not sure if i could afford to remortgage. I would realistically be able to afford £300 - £400 per month max.
I also have debts with HSBC, how would that work with regards to also having my mortgage with them?

[finebridge]

Hi Bazza,

With a little more info we can advise you further.

Kind Regards

Nicola



Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[MelanieGiles]

If you can afford to pay an average of £350 per month (say) and you have debts of £50,000, including an equity release at the end of the IVA based upon the current valuation of your property (assuming 85% loan to value, you ought to be able to return a dividend of 30p in the £ approximately under IVA proceedings.

If this idea appeals to you, then you need to find an insolvency practitioner to represent you - but also consider bankruptcy and a debt management programme as alternatives.

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

[bazza1982]

If i was able to release equity in my property now and pay some debt but not the HSBC debt, would HSBC be more likely to refuse the IVA based on the fact that i have just remortgaged with them but not consolidated any of their debts?

[MelanieGiles]

I think that they would be tremendously unimpressed with that idea, and you would be preferring other creditors which is an offence under insolvency legislation.

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

[bazza1982]

Thanx for the quick reply melanie,

basically, i have a debt to my parents that i have to pay which i would like to use the equity in my house for, i do not want to leave them out of pocket. If i remortgaged with a new lender in order to settle that debt and then applied for an IVA for the rest of my debts, would this be frowned apon?

[MelanieGiles]

Yes - your parents are associated creditors, and that makes the preference even worse. You will have to treat your parents debt the same as every other debt, and they will have to rank for a dividend payments alongside all of the other creditors.

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