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This i really regarding my parents:

My Father was diagnosed with an incurable disease (stable, but he will always be a sufferer) 2 years ago an is self employed. Presently unable to work and in around £50,000 worth of debt with my Mother. Mum works and bings in around £11,000 a year. They are presently mortgaged and have around £90,000 equity in their property. They have tried to re-mortgage but with no luck. Dad is presently on benefits but hopes to return to work soon.

My siter and myself work, and help out the best we can, but since I am on an IVA and my sster has already moved back home to help out, there's not muh more we cando.

Any advice?

They have a social worker who has got them into a debt management programme of sorts, but they still get the phone calls and are being forced to pay more and more every few months.

Your advice would be much appreciated!


Arghhhhh!!!!!!!!!
If only I'd said NO!

Hi sbw

Your parents are unfortunately not insolvent, given the equity they have available in their property. They can either continue with their Debt Management Programme or seek a voluntary sale of their property to repay their creditors. Depending upon how much they are actually paying their creditors at the moment, which I assume will be minimal, they may find that their debts are actually increasing as interest continues to be charged.

Not an option for you, given your current IVA, but would it be possible for your sister to buy your parents property to release equity and then allow your parents to live there for a rental equivalent to the mortgage payments?

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