please give advice, i have long story

[ami]

hi, i have long story for my current situation, so cut it sort, i have debts £60000, £12000-15000 from 2000 i lost in share business when i used credit card money.in 2004 august, i bought a house in norhumberland to move there but did not go there ,insted i rent it out.after five months my hse was burnt out deliveratly and damaged badly. becausse my insurence did not cover i had to use my own money ( credit card) to fix it, and i had to take another consolidate loan to reduce my outgoing, but after few month later i was out of wark for six month for a lag ingury, and i still did not recover from it but i rush back to work again and after one year i am still isjured hi, i have long story for my current situation, so cut it sort, i have debts £60000, £12000-15000 from 2000 i lost in share business when i used credit card money.in 2004 august, i bought a house in norhumberland to move there but did not go there ,insted i rent it out.after five months my hse was burnt out deliveratly and damaged badly. becausse my insurence did not cover i had to use my own money ( credit card) to fix it, and i had to take another consolidate loan to reduce my outgoing, but after few month later i was out of wark for six month for a lag ingury, and i still did not recover from it but i rush back to work again and after one year i am still isjured again and not working since two month.my mortgage is £70000, if i sell the hse i can get £85000, i got two childreen and my wife do not work, i live with my parents but now i have to pay half of the rent to my father baecuse it is a councill property, and after all expences i left little money.i get £1600,( wages+child tax credit+ child benifit). and my expences is £1535.my mortgage cover from my tanent's rent.since five month i am paying half rent to my father, so i do not get any money left.please give advice.if i go br do i get any festriction order beacuse i consolidated my credit card to a loan, and do i have to pay any money for three years.

[MelanieGiles]

Hi ami and welcome to the forum

I am not sure how you could fund an IVA "which can clear up to 75% of your debts", so cannot agree that this is an option for you based upon the circumstances you have described.

If you decide on bankruptcy as an option, it is unlikely that you would get a restriction order merely for converting a credit card to a loan, and as you appear to have no disposable income also unlikely that you would need to make any ongoing payments.

I suggest that you take more specific advice on all of the options available to you by consulting an insolvency practitioner.

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

[ami]

hello melanie, thanks for ur prompt reply.can u get me an iva if i am able to manage 25% or £250 every month for six years.based on no equity in my house( only £15000 roughly) so i can pay extra one year and they would not take any equity out ( if any) within those six years.for ur information my housse is on rent and i live with my parents. if my parents help me, than i think i can manage £250 every month.if i pay £250 every month for 72 month( six years)based on no equity on my house, than i think that will come to 30% of my total debts( roughly £60000).so if it does cover ur fees and if they ( creditors) agrees not to take any equity.can u arrrane an iva based pm that infoprmation please.

[MelanieGiles]

Hi ami

OK the figures seem to fit an IVA - but I would be concerned that you would only be able to pay them with family support. Can you explain why you would rather do an IVA for six years than declare yourself bankrupt?

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

[ami]

hello melanie,glad to hear that u can propose an iva based on 25% for six years and no equity would be taken out end of the year. if i do not pay rent to my father for six years than i can manage to pay £250.i have lost most of the money due to share business in 2000-2001, although i rented the house to the wrong people and it cost me lot of money to mantain,and althiugh there is little equity at the moment,(price is £85000 now and mortgage is £67000+redamtion panalty£3000=£70000) after six years house price might gone up to £110000 .after six years i might even move to that area.blyth is arelatively poor area compare with other town in northumberland.i can start a small business like indian takeaway business with little investment after six years. i can not see any realistic chance to save any money in near future to buy any house,i have a brother living with me and when he get married one of us have to move.stima on bankcraftcy will be enormous effect on everyone of our family,no one knows about my debts in my family.i know, it will be very hard for me to carry on six years, and because of my medical condition(plunter faciatiasis on left leg) it will be exrimly difficult, but i want to try my best to win on this occation.

[Barrington]

Hi Ami
As an IP myself I agree with Melanie - why on earth would you want to subject yourself to 6 years of further pressure (with the ever present risk of bankruptcy if it doesn't work out, which sounds highly possible given how tight your finances are).
I should also point out that if you did manage to persuade an IP to take on an IVA the house would not be ignored. It would have to be valued now and the proposal would probably require a revaluation and remortgage after 4 years with 85% of any additional equity being brought into the arrangement, in addition to the monthly payments.
I certainly would not be keen on suggesting a six year deal - only go for five years max.

Phil Wood (IP since 1983)
www.barringtons-online.com

[ami]

hello barrington,i do understand what u mean, one thing i want to say,i do not want to take any iva where i have to revalue my house after four or five years,as i feel i would not be able to mantain. if i sell my house now i will get £15000 left after settledown mortgage.is it possibele to offer them( all my creditors)lumsum of £15000 and pay one year about £250/month. what i am saying is if i sell my house now and offer them £15000 + one year £250.does it make any sence? to you or mealnie.

[MelanieGiles]

In my earlier post, I had not realised that you have equity in your property. You will not be able to avoid creditors wanting a share of this, and a one year IVA will not work. In view of the fact that you have equity, you might want to think of a property sale now followed by five years of IVA payments at £250 per month. This would give a fairly good return to creditors. Alternatively, you could offer the equity at the end of the five years, but then gamble on the property market which probably will continue to rise.

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

[ami]

hi again, as i told u at the beganing it will be very difficult for me to pay five years.although i will get £15000 if i sell the house now but i have to pay estate agents feel £1500- £2000 and solicitor's fees which would be around £500. so after deducting all expenses i will left around £12500- £13000.do u think is there enough equity left for creditors.i think they should not release that equity at the beganing and because there is no equity or only little equity, instead of selling the house they should except one extra year of payment,and settle down iva for six years.than i feel in six year thay will get some money and i would also get little back.it look bit selfish, what i feel is six years or five years is a very long time for someone to payback for an iva and end of the day left nothing but to stragule.

[MelanieGiles]

Ami

Sorry - but I just don't feel that your proposals will be acceptable to creditors as an IVA. You are suggesting that they accept £3,000 against potential equity of £12,000 - I would not put that forward for you.

You say it would be difficult for you to pay for five years, yet earlier you were wanting to pay for six! I think that you need to take more specialist advice from an insolvency practitioner in your area, where you can perhaps arrange a face to face meeting.



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

[ami]

hello melanie, thanks for ur valuable advise.and also hello to Barrington for her advice. I think i have clear myself now which way to go.actually i was not sure whethere an iva or BR would be more appropriate for me.it seems that i would not be able to put forrowed an iva based on no equity on my property,( the only reason i wanted that after six yrs i will sell it and get all my money back, so i will be very much commited to complete my iva)but i think it is not possible.So bancraftcy is my best option, so i have to prepare myself for this from now.AS u know i mention earlier that my medical condition is not very good.because of plunter faciatesia on my leg, i was off sick last year five months and this year i am sick again sick for same reason about three months.so now i feel i would not be able to complete any iva anyway.so thanks again both of you for ur advise. now i want to know do u know anyone who can help me filling bankcraftcy form.

[Skippy]

Hi Ami, you can complete the BR forms online, and if you have any problems please post on here and we'll try and help you. The best thing about completing them online is that you can amend the forms and save them as you go along. Please don't worry about the 'stigma' of BR - very few people read the BR announcements in the paper. You will get the chance to make a fresh start, so good luck.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

The bankruptcy paperwork is extremely simple to complete - personally I would not recommend that you pay a professional firm to assist. Why not download the forms from the Insolvency Service' website to see if you can manage them.

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

[ami]

hello melanie again, i had to come back again.u said i can offer them £250 for five years and equity end of the five years.but is it possible that i will pay for two years at £250/month which is £250*24=£6000, and after two years i will sell the house and offer them final payments, (which would be roughly £18000- £20000)(approximate selling price £88000-mortgage£67000=£18000,)
so end of the two years i will pay them (£6000 + £18000)=£24000, which will be around 40% return and complete iva.do u think they will except this as a fair settlement.

[zoe]

Hi Ami
The whole idea of an IVA is to give the best possible return. Therefore it wouldn't be a case of what you can offer, your income and expenditure would be listed and you would go through this with your IP. It would be heavily scrutinised by your creditors and you may have to proove what you pay.
Hope this helps



Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/