www.iva.co.uk

Our situation is getting more and more desperate and it has already been suggested a few times on this forum that we should go for bankruptcy rather than struggle on with our IVA.
I think this is probably the only way forward for us now - we have given it our best shot over the last 18 months but external factors beyond our control are stacking against us. (We dont have a regular income as we run our own business).
The only possibility seems to attempt to offer a full and final but sadly, unlike what seems a high percentage of others, we have no rich friends or relatives!!
The only vague possibilty is that our house maybe worth more than we were thinking...but of course we also have an equity clause.
So the question is ... Is there any point to getting a valuation done on the basis that we could sell up and offer a F and F now with the equity? It would still not reach the 26% dividend of the agreement though. This is not something we could do lightly I hasten to add...we've lived here for 20 years - remortgage could never raise anything near enough incidently, but as the only other future we can see is bankruptcy is there any chance the creditors might consider it an option??

Hi
Absolutely
Your creditors would receive far more if you sold rather than if you petitioned for bankruptcy.
Have a good chat with your IP,a good variation proposal from your IP,if accepted by your creditors,will give you upto a year to sell your property and pay your creditors
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Just want to say that I wholeheartedly agree with Andy's advice.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi,
I fully understand what you are going through, facing debt is a very frightening ordeal and the prospect of losing your home is heartbreaking. Until I found this forum and the wonderful people on it I had many a sleepless night, thinking how did I get into this mess and worse still how am I going to get out of it. I have just sold my house to pay off creditors, moved into rented a couple of weeks b4 Christmas. Moving out of a house you have spent a number of years in, watched your children grow up in, and leave behind so many memories is not easy. But at the end of the day it is just bricks and mortar, you will still have your happy memories, nobody can take those away, and home is home wherever you are, it is what you make it not the bricks around you that makes it a special place for you and your loved ones. We now live in rented accomodation, it is a nice house, and at least I am now almost debt free and can give my family a new start. Good luck with your future, I hope everything goes well for you.
All the best
Mike

Thanks for the advice Andy and Melanie and for your thoughtful words Mikes (have to say bought tears to my eyes) - of course you're absolutely right - I have had months now to come to terms with the fact that one way or the other we will have to give up our lovely home that we have put twenty years of work and love into. We know we will never have a home like it again, nor for that matter could we ever have our "own" home again as renting will be the only option.
We are clutching at straws even, in the vague hope that the house could sell now for much more than we thought, and that the creditors might accept a much reduced full and final in the face of otherwise certain bankruptcy.
Sorry this leads onto a few more questions -
Andy, you say they may allow a year to sell - But what would happen if it didnt sell within the year and/or didnt sell for as much as was hoped??
And along similar lines, how would we agree a F and F amount when there is no way of knowing how much it would eventually go for??
Lastly, would we still be expected to try and meet the full IVA monthly payments during this period??
Sorry so many questions! May all be pointless anyway if valuations come out too low!
Many thanks.

Hi there

If your property did not sell within a twelve month period, the IVA would be extended until it did sell, however you would have to demonstrate that you had made every effort to market the property and your IP would need to see a detailed agents report. In reality, most properties do sell over this time period.

Creditors would bear the risk of a lower price needing to be accepted, after all they would face the same difficulties under bankruptcy proceedings. I do a lot these types of IVA, and they are relatively popular with creditors as they can see that they will get their money paid a lot earlier than under bankruptcy proceedings.

You would only need to make ongoing contributions in the event that you could afford them. How much do you think your property is worth, and how much is outstanding to secured creditors. Also how much do you owe to unsecured creditors in total?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp