www.iva.co.uk

hi there, myself and my husband have jointly around £26000.00 of unsured debt. we are thinking of going for an iva because its now getting difficult to pay the credit cards loan and store card we have.

we are homeowners but have no equity in our house either. can our house be taken away from us. i have read severel bits of info and it says not unless you don't pay your iva and then it could. is this right???

Hi
Your house is safe in an IVA as long as you continue with your mortgage and secured loan payments.If your IVA fails then it is possible that your creditors will bankrupt you.
You will also have to release some equity to your creditors in the fourth year of your IVA,even though you have no equity now you will,probably,in four years.
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

well our current value is around £105000.00 and we currently owe £126000.00. what happens if no equity is available even in the last year of the iva. would the term be extended???

If you have no equity then the IVA can be extended for a further 12 months, I believe.

The best thing to do is work out your disposable income before paying unsecured creditors. Maintainable but not extravigant.

Phone a couple of companies to see where you stand and get a feel for whats involved, make sure you allow enough to live on for a 5/6 year period. Start with the companies on this site.

If you have debts with your current bank you will need to open a basic account another non associated bank.

With that said there is a sticking point, if you owe more than 25% of your debt to Northern rock an IVA may not be possible.

lily

no i only have northern rock for the mortgage so that won't be applicable. with owe to HSBC (loan and 2 credit cards), Yorkshire Bank (credit card) and Argos (Store Card)

With HSBC as a creditor you will have to be hitting the 40p in the pound target.

I realise how stressed you must be feeling right now. It is much better to take your time and understand fully than rushing ahead out of desperation. Talk to a few companies who will run through your income and espenditure with you. Try IVA.com for feedback on IVA companies. (avoid synergi).

If you need anotehr basic account, open one sooner rather than later, avoid HSBC and first direct.

Make sure you allow for incidentals like prescriptions etc and have a small contigency fund.

Make sure you calculate everything, and allow for incidentals like prescriptions and include a contingency fund.


Good luck and keep posting.

lily

we are now in the process of sorting out our iva with W3 debt solutions. i called a few and they were the one who i trusted immediatly and my friend has had one with them a few years ago. thanks for all your advice and tips and i'm sure i will need you again.