please advice(urgent)

[faith]

i am looking to go into an iva.would it be wisdom to make a lump sum payment borrowing on the house considerng all the pitfalls of secured borrowing such as variable interest,paying for 25years and repayment charge or just go into an iva for 5 years and come out clean.
2.proposals are yet to be presented and if it goes wrong i might be stuck with money i can not give back or repay.
please advice

[jane.l]

We have learnt the hard way, we took out a secured loan to pay off all our unsecured debt and have lost our house as we just cannot pay everything now. My advice is NEVER take out secured boworring to pay off unsecured debts, maybe thats wrong, I do not know, but if I had known about IVAs a couple of years ago, maybe we could have looked into one then and been able to save the house. We are petitioning for bankruptcy soon (hopefully)

[accgroup]

Hi Faith

If you have equity in your property you may be required to re-mortgage as part of any proposed IVA as well as making monthly contributions.

Have you spoken to anyone yet for advice? If you have sufficient equity to repay your debts without the IVA that may be the best option for you but it might be helpful for you to contact someone 1st and go through all your affairs so they can advise you accordingly - giving you all the options - you don't usually pay anything for intitial advice.

Hope this helps



AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[faith]

thanks alot.that is my greatest fear and the length of it as well.i have seen people lose their house cos of this.the apr we were given were unbelievable.hope i get more people to share their thoughts

[faith]

there property has no equity and that was why our mort company could not help with equity release

[jamesfalla]

Faith

If you have a property and are considering an IVA, then almost certainly you will have a clause which requires you to get a new valuation in the 5th year and release equity if there is any available to finalise the IVA. However, if your propoerty does not go up in value and there is still little or no equity in it, you will not have to relase anything.

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

[Sadsack]

Hi Faith
Please take care when considering releasing equity from your property prior to talking to someone about it. I have been asked to release equity from my property within the 1st year of the IVA - ie I have to sell my home, release equity and attempt to purchase another property. I have subsequently had copies of telephone calls made to my IP regarding this and they are demanding that in year 4 of my IVA I once again have to sell or remortgage my new property to release further equity. Now, I am happy to pay my debts - if I were able to pay my creditors 100p in the £, I most certainly would, but because I cannot afford to do that, I entered into an IVA instead of BR so that my creditors could get as much as I could possibly pay.
Get as much advice from this forum as possible before you make your final decision.
Sue

[MelanieGiles]

Hi Faith

How much equity do you actually have in your property at the moment, and what is the property worth. Also have you calculated the disposable income that you could offer to creditors on a monthly basis? Could you also post details of the amount you owe to your creditors.

It is impossible for anyone to advise you which option would be a better choice without posting this information. It may be possible to offer a "full and final" IVA, which avoids making contributions over a five year period and completes in just one year, but again this will be dependent upon your individual circumstances.

Post the info and I will be glad to provide more definitive advice.

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

[faith]

i looking to go into an iva but however when childcare is considered it seems a bit tight.bankrupty is not an option has i have a very young family and it might affect some other private matters.
what effect will a secured borrowing to do a final settlement in an iva have?what are early repayment charges like in secured borrowng just incase i find a better apr?the apr currently we have is 11.9%

[MelanieGiles]

How much is your house worth and how much is the existing mortgage. Also how much do you owe in total?

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

[faith]

we moved in 6months ago.bought house for 300k we have interest only mort and still owe 270k on the property.
total debt is 103k

[MelanieGiles]

Hi faith

You will have some difficulty in raising any money against your property, given your current high loan to value ratio, and I really would be careful about secured loans - read poor Jane's posts about her experiences.

With debts of £103,000, you would need to be able to make monthly IVA payments of at least £580 per month to make the arrangement viable. This could be reduced, if you are able to raise equity at the end of the five year period, but you are gambling against your property increasing in value over the same period. What disposable income do you feel you have on a monthly basis?

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

[faith]

thanks melanie.i would have about 600 as disposable income monthly to pay.i have cotacted your office and booked to speak to you but i am yet to get a phone appointment.all paper work is ready is just to get advice over the phone privately,preferrably today although i know you are busy.

[MelanieGiles]

Hi faith

The first stage of dealing with your case, will be for one of my case managers to talk to you and find out more about your financial situation. My ladies are all very well-trained and familiar with obtaining all of the information I will need to be able to advise you properly. I will then be fully prepared to have a direct chat with you shortly, and more thank likely sometime next week.

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