www.iva.co.uk

I really need some advice. My husband and I have joint debts (some in his name and some in mine) of about 85K. These debts have not been paid since December 2006. My husband has been made redundant and is currently claiming contribution based job seekers allowance and I am on incapacity benefit. We own our home and have about 60K equity. We hae three children who live with us aged under 16.

I have communicated with my creditors and explained the situation. Some have been very understandable and are accepting token payments while we try to sort ourselfs out. Others are now really piling the pressure on. We both owe money to Barclaycard and they have passed out debt onto 1st Credit. 1st Credit have now issued me with a Statutory Demand and say they will make me bankrupt if I don't pay in full or offer to secure the debt. What I ned to know is hwat do I do now? I am guessign they want me to secure my home against the debt. What happens then?

Also what is the liklihood of them making me bankrupt? If they did what happens with my other creditors? Also what happens with regards to my house, car and household goods?

I have also conseidered selling my house and using the equity to pay off what I can. Maybe the creditors would reduce the debt for a one off lump payment from the equity? Would I be able to do this? What would the bankruptcy courts htink about me selling my house? Also I am a bit confused about selling at a discount. There are many companies who offer to buy your house within weeks. If I did this then I could maybe have paid the creditors within the month and then they will be off my back.

I really don't know what to do for the best and I am terrified. I have a heart condition and this stress and worry is making it worse. I had to call the paramedics out only last night as my heart went into a spasm and I couldn't breath.

Thank you in advance for any help and advice.

Hi ejs and welcome to the forum

This creditor are serious about making you bankrupt and probably will, which will result in the ultimate loss of your property in the event that you do not have anyone who could acquire your beneficial interest - ie a benefactor who could buy out the £60k equity.

One option for you would be to propose IVAs to your creditor now based upon a voluntary house sale. I have done this many times in my career, and you could ask to retain a suitable sum of money to meet the costs of removal expenses and a future rental deposit of say six months.

You would not be able to repay all of the debt, but creditors would agree to write off any balance and you could have up to 12 months to sell and relocate. In the meantime all of the stress would be relieved by appointing a qualified professional to act for you, allowing you time to consider a debt free future.

A difficult decision, when faced with selling the family home, but one which is going to be out of even your hands soon if this creditors succeeds in making you bankrupt.

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

Hello and welcome

I am not an expert, just another person in debt, I believe you could do a full and final IVA based on equity being paid within 12 months of a sale.

I know this is a very stressful time, I have been there, not knowing which wasy to turn, dreading every day, At the end of the day, you cannot be replaced, youre so much more important than money,

I am very sure that this would be a solution, just wait until one of the experts answers, its late now and they may have logged off.

There is always a solution to every problem, you are amongst friends here. It may not feel like it but you already done the hardest part by realising you cannot go on like this and need to do something about it,

Take care of yourself

lily

Melanie, you werent there when I started posting,

lily

No probs Lily - your input on the forum is always welcomed.

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