Starting out some help please.

[whichwaynow]

This is my first proper post here, I have money trouble for a while and have been robing Peter to pay Paul as a result I now have debts of around £90000. I have a morgage with my wife who is debt free. We have been advised to release my share of the equity from the house which is about £43000 to do a full and final settlement IVA. Is this a good offer ? If it was done over 60 months would the house be valued at todays market or would it be valued in 4 years time ? After all my expenses have come out at the end of each month I have about £150.00 spare.
All my payments to all the card companies and loans are up to date at the moment. I went to the bank this morning and canncelled my overdraft facility as my bank account now shows 0.00 in it and I did not want to run up any more debts. I am now having my wage paid in to my wifes account.
How long will it take the lenders to start sennding letters/calls once they have not been paid
? Thanks for any support and advice anyone can give me.

[Adam Davies]

Hi
Can I ask if your wife works ?If so I doubt that a full and final settlement will be accepted unless you are unable to work and have no income.
An IVA over five years with an equity release in the fourth year will be a more realistic way forward.
When you say you only have £150 left is this after allowing for essential living costs only and no unsecured debt payments ?
Can you post as many details as possible
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

[whichwaynow]

My wife works part time. When we brought the house she used the money from her house to put a very large deposit down on the house. As a result she really owns more of the house then I do at the moment. The £150 left is after all living costs are taken at the end of each month. I owe £90000 spread between 20 cc and one loan.I can list them all if needed. At the moment with what she put down on the house she owns 50% the morgage comany owns quite a bit and my share is the equity which is left. Can give more details if needed.

[Adam Davies]

Hi
Well if £150 is all you have left to pay to creditors each month then an IVA will not be possible but a full and final may be.You need to ensure that your expenditure reflects your wifes income,eg her percentage of the total income will need to be reflected in contributions to the household costs.
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

[aguise]

Hi which way
Is the 150 left after living costs and the bill payments or is that all you have left after just basic,food mortgage etc. If you post more details of the creditors mainly is it northern rock or hsbc then more advice can be given.

Ang

[whichwaynow]

When I went to have a chat with the company who will be doing the IVA they worked out that after everything had been taken out. I had £150.00pm left.
I owe money to
Natwest cc and loan £21000
HBOS £12000 cc
Barclys cc £8000
MBNA £7000
Sainsburys bank cc £6000
Bank of Scotland £4500.00
Citi,Egg,Amex,Capital 1,M&S,Marbles,Morgan Stanley, between £2000-£4000

[aguise]

Hi which way
I agree with Andy an iva would not be possible but a full and final may be, and as Andy said have they taken into account your wifes share of the bills as she would be expected to contribute her share according to her earnings, this may increase your disposable income.

Ang

[keh]

i beleive whichwaynow means that he has £150 left AFTER he has paid the bills

to quote

All my payments to all the card companies and loans are up to date at the moment.

If that was all he had left i don't beleive he would have enough to pay his cards etc.

sorry Andy but this time i must say an IVA will be the best

Keith

The long and winding road will straighten out eventually....keep the faith

[whichwaynow]

Sorry about the confusion just to set things straight. All my loans and cc bils come to about £3000 pm alone. I bring home £1200 pm. The only reason I kept my head above water for a while was that I had a little savings which is now gone. After the cost of living bills have gone eg morgage, water,gas ect. With my wifes wage at the end of the month we have £150.00 pm left

[aguise]

So as we thought that is all you have to pay the debts with.

Ang

[lily]

Hello which way

Just to add that if a full and final IVA is the best way forward for you then make sure you speak to 3 or 4 companies before committing to it. There are some good and some not so good companies out there.

Good luck to you

lily

[keh]

H All (& Andy)

Sorry folks i got it wrong lol

Whichway also look at www.iva.com

Keith

The long and winding road will straighten out eventually....keep the faith

[whichwaynow]

Thanks for that. I have spoken to a few companies and they have all said that a full and final offer is my best option. Does £43000 sound like a fair offer ? Not sure how much it is in the pound.

[iva_squirrel]

Hi whichway,

£43000 sounds like a good offer to me. If we base the IP fees on £7K you would be offering your creditors around 40p in the pound.

Good luck and all the best.


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

[MelanieGiles]

On what basis has the £43k been calculated? I would personally look at offering the equivalent of your share of the equity in the property. If your wife has a larger share, by nature of the deposit she paid when the house was bought, consideration should be given for this. Do not always assume that equity is split on a 50/50 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