Not sure if I would be eligable for an IVA

[terrified]

I am currently self employed and started a business nearly a year ago which is going quite well although had a couple of quiet weeks this month. I have a mortgage which is currently in arrears and have been to court to sort out the arrears and have had the arrears agreed over a 2 yr period. I also have a secured loan which is also in arrears which I am in the process of trying to come to an arrangement with them it has now been sent to a debt collector. The total debt with the mortgage and secured loan totals to about 125% therefore I have negative equity.

I have personal debts of around £30k through personal loans and credit cards and have just obtained a CCJ for the personal loan. They are reputable bank but they wanted the full arrears paying would not accept part payments. I also have the mortgage with the bank too, I have always had a good credit rating until I could not pay back in October. I tried to ask the mortgage company to see I could make half payments for 6 mths but they said no straight away. I have tried to come to arrangements with most of the creditors some have agreed but I have overstretched myself.

Can you still apply for an IVA if you have negative equity in your house.

I am not at the stange that I dont want to answer the phone just being hounded constantly, I go to work upset my parents have tried to help me out as best as they can.

I just dont know what to do, if to apply or make myself bankrupt

[MelanieGiles]

Hi terrified and welcome to the forum

Gosh you sound as if you have been juggling a lot lately! You can have an IVA if you have negative equity in your property, but need to be able to demonstrate that you can afford the mortgage and the secured loan payments, as well as funding IVA contributions.

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

[terrified]

I think it depends on whether the secured loan company will agree to my repayment as to were I go from here. Not had much luck in my house and have been there for years I just wish I could hand back the keys and walk away.

[terrified]

If I decided to give up my house would I still be considered or would I be in a better position if I stayed in my house as this is the majority of my outgoings. I am paying nearly £1500.00 on the mortgage and secured loan, if rented it would be around 400 to 500

[MelanieGiles]

If you give up your house, and you have negative equity, this will mean that the unsecured element of the secured loan will form an unsecured creditor in your IVA or bankruptcy. If you cannot afford the payments to the secured lenders, and can live far more cheaply in rented accomodation, you might even be able to pay your way our of your debts without reverting to any form of formal insolvency prcoeedings.

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

[iva_squirrel]

Good evening,

Could you please tell us how much you pay towards your mortgage and secured loan per month and how much your net household income is? Creditors usually do not like clients paying more than %40 of their household income towards their mortgage and secured loans.

Kind regards,

Julia Simavi

Shortlisted with special commendation for Debt Counsellor of the Year by Credit Today Awards 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

Credit Today Awards 2007 http://www.credittoday.co.uk/awards/winners.htm

[terrified]

At the moent for the next 2 years my mortgage is £594 and the secured loan what they are proposing to pay for the next 6 mths is 1700.00 after 6 mths it will go down to 894.00 depending what the interest rate does. THe mortgage outstanding it £91,000 and the secured loan I think including interest is around 75,80K I think not 100% sure on this. I currently ear anything between £1,500 to £2,000 a month depending on how well I do this is an average amount.

[MelanieGiles]

Gosh - those secured loan payments are high, and if you propose an IVA with payments that high there is a risk that it will fail because of high gearing. I think that you may have to face giving up the hosue, but suggest that you take more specific advice from an insolvency practitioner before proceedings further.

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

[terrified]

They are high the house is valued and is on the market for £149,950 although it has been on the market for a long time as the average house price is about £115,00 just that I had an extension built. Wish I never went ahead with it now as it has not gained in value. I really think I have had not much luck in the house not just the financial side either. Pay more on the secured loan than anything else. How they expect me to pay 1700.00 a month to clear it over 6 mths I do not know.

[terrified]

Morning

Do you have to look for an IP local to me or can it anyone in the country it might soundlike a stupid question I know.

I could not sleep last night just thinking about what needs to be paid out this week. Do I give up my house which at the moment I just hate, its a 6 year old house I have had no heating for the last 2 years and my roof tiles flew off with the storms this year and forgot to renew my insurance policy.

[aguise]

Hi terrified
You dont have to have an Ip close to home but it can be an advantage if you want to meet directly. Mine is not local to me and there is no problem in fact they came to me for a meeting. If you have someone in mind you would feel happy with then go to them, ring a couple the ones on this site are a good start or there is iva .com where you can get reviews on all of the companys in the country. Take your time dont rush.

Ang

[iva.com]

Hello terrified,

You do not have to work with an IP local to you although meeting one in person is definitely a good idea.

We have a list of IPs and IVA firms at www.iva.com. We also have reviews on many firms, posted by their clients, which can help when choosing an IP/IVA firm.

Good luck with everything. Please let us know how you get on.

Kind regards,
Terry Balfour
IVA.com

IVA.com - Comparing IVA firms by using consumer feedback.

Please rate your IVA firm or Insolvency Practitioner by reviewing them here: http://www.iva.com/submit_iva_review.asp

[Adam Davies]

Hi terrified
Your quote " my mortgage is £594 and the secured loan what they are proposing to pay for the next 6 mths is 1700.00 after 6 mths it will go down to 894.00"
You state that you take home between £1500 and £2000 per month so even when the secured repayments go down to £894 you will be paying about £1500 per month just for the house leaving yourself between zero and £500 per month to live on and pay your unsecured debts.
You really need to act now.
Speak with one of the companies on this forum about an IVA[after surrendering the keys or selling the house]] or bankruptcy.
Good luck to you.
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