Moan

[Dee]

Just wanted a moan really. I have been looking at our finances as we are really struggling. Today I found out that my bank (Abbey) have decided to remove my overdraft facility. I am the first to admit that I haven't been running my account very well of late but I received no notice. To top it all it will take them 5 working days to sort it out so when my husbands wage goes in tomorrow we cant access it. When I asked how I was supposed to feed my kids she said she didn't know. They are cancelling my debit card and cheque book and want me to pay it back at £132 per month.
I thought that now my options had run out there was only one route to take - IVA. However I have just calculated my incomings and expenditure and I am only left with £140 per month which isn't enough to enter an IVA with.
We have our own home but very little equity and my husband is very reluctant to give up our home. He has been breaking down a lot recently and saying that he doesn't feel like life is worth living anymore.
Things are only going to get worse when my daughter leaves school to go to University because her maintenance will stop along with Child Benefit and her allowance of the Family Tax Credits. Then I fear we will have no surplus income.
Not sure what to do next and feel that very understanding family members are tiring of the whole situation and feel totally drained by something that they are not responsible for nor have any control of.

Feel slightly better having got that off my chest

Thanks for listening

Dee

[MelanieGiles]

How much equity is there in your property, Dee, and is it jointly owned?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Dee]

Hi Melanie

Yes it is joinly owned and there is only £7k equity - £128k owed /value £135k

[rachellxx39]

I am sorry to hear of your situation .It is so tough juggling family life and debt. All i can say to you is that we never thought we could do an iva and we have our creditors meeting on monday. My husband is a proud man and he didnt want to admit we had a problem but once we had took advice from on here and Clearstart he faced reality that we could not continue as we were. Get some specialist advice and it is good to get everything off your chest , i found that out for myself.

[MelanieGiles]

If you were to declare yourself bankrupt, that equity level is so low that I would question whether the OR would commence possession proceedings. Is there anyone who could acquire the equity for you - friends or relatives, as to be frank bankruptcy proceedings sound a far better option for you. Are you sure that in today's falling property market, that your valuation of £135k is realistic?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Dee]

Thanks rachellxx39. My husband too is a very proud man but he doesn't handle stress very well and dealing with him at the moment is the hardest thing of all.

[Beechy]

Have a look at this web site and see if the propety in your area is falling
http://www.propertysnake.co.uk/
There are also a few web site that you can look at to get an indication of the house prices in your area have previously been getting

Beechy

[Dee]

We had the house valued in May 2007 and this was the value then. My understanding is that in our area house prices haven't fallen too greatly. Do you mean there may be a possiblity of keeping our home even if we went bankrupt? Unfortunately the family members who would like to help aren't in a position to.

Thnaks

[Dee]

Thanks Beechy it looks like it is a very small decrease of 1 percent

[Adam Davies]

Hi
Yes if you can find a third party to buy out the ORs interest[your equity,plus costs of a few hundred pounds]you will be able to keep your property as long as you maintain the secured payments on it.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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]

I would strongly recommend that you get the property revalued now, on a worst case scenario - ie you need a quick sale over the next three months. You may be suprised at the outome, and get a current statement of redemption from your lender as well so you can do the sums.

If the equity is minimal or there is no equity, you can offer a modest sum to the OR and the house will not be touched.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Beechy]

So that put the equity at around £5,500 thousand, and based on the current market that is not a great amount with house price expectations over the next few months

Beechy

[Dee]

Actually at the moment the amount to pay off the mort would consist of an additional £4k due to a early redemption fee which expires in May.

[Beechy]

If you do go bankrupt make sure you buy out the OR's interest in the property, even if there is no equity. I think it is a £1 plus some admin

Beechy

[Dee]

what would happen if we applied for this now, would they make us wait until the redemption penalty had expired in May?