I am flabbergasted that a so called insolvency practitioner would give out advice such as this. Can you tell us the name of the company, Sally, as they should be ashamed of themselves.
This company is suggesting that at a time when your are insolvent, that you borrow further money from creditors who are known to be supportive of voluntary arrangements to favour a creditor who are not wholly supportive of the process except in certain circumstances. This is appalling advice.
With regard to your property, they are right in saying that if your mortgage payments are 50% of your income, then some creditors will feel that is too high. In my professional opinion, I also feel that this is very high gearing, when mortgage interest rates are anticipated to rise even further. Is your mortgage on interest only, or repayment? If on a repayment basis, you could switch to interest only to benefit from lower repayments and therefore reduce the borrowing ratio.
If you have a secured loan with Black Horse, there is no equity for creditors as NR will get paid first, and then Black Horse will get the differenc, leaving a shortfall.
You do need to take proper professional advice about your situation, from someone who will review your finances and advise on the advantages and disadvantages of each process - without luring you to effect preferential payments and juggle finances to try and make an IVA fit.
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
