shortfall

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mitsu9

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Post by mitsu9 » Fri Jan 29, 2010 7:51 pm
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hi we are being repossessed which is close to going through.im brupt and so covered for any shortfall.wife isnt and we know there will be a shortfall and she will be liable.she also has debts of about 17000 and poss shortfall of maybe 25000.my question is can a mortgage/secured loan be included in a iva.thanks
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marky b

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Post by marky b » Fri Jan 29, 2010 9:04 pm
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im pretty sure iva can only include unsecured debts.
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Skippy

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Post by Skippy » Fri Jan 29, 2010 9:40 pm
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I think that once the house has been repossessed the debt then becomes unsecured and can therefore be included in an IVA. Hopefully one of the experts will be able to confirm.
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Lisa2009

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Post by Lisa2009 » Fri Jan 29, 2010 10:12 pm
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I agree with skippy. I do believe the secured debts will become unsecured once the house is reposessed.
http://mrsskint.blogs.iva.co.uk/ 'Our Story'


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kallis3

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Post by kallis3 » Fri Jan 29, 2010 10:39 pm
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The shortfall does become unsecured and can be included in an IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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rhondda2

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Post by rhondda2 » Fri Jan 29, 2010 11:28 pm
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My Mortgage shortfall was included in my IVA,as Kallis3 says when house is repossessed ,any monies then owing become unsecured.
Iva F&F settled...Yeah !!!
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MelanieGiles

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Post by MelanieGiles » Fri Jan 29, 2010 11:56 pm
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Does she have other debts as well as the potential mortgage shortfall?
Regards, Melanie Giles, Insolvency Practitioner
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mitsu9

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Post by mitsu9 » Sat Jan 30, 2010 10:57 am
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hi yes she has 3 other debts halifax bank overdraft/capital one card and barclaycard.these have been on a dmp for 4 mths
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MelanieGiles

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Post by MelanieGiles » Sat Jan 30, 2010 11:28 am
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What does she pay into the DMP on a monthly basis?
Regards, Melanie Giles, Insolvency Practitioner
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mitsu9

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Post by mitsu9 » Sat Jan 30, 2010 2:28 pm
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at the moment only 50 a month.we think total debt will be 40-45000 and will have about 450 disposable income after everything
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kallis3

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Post by kallis3 » Sat Jan 30, 2010 3:52 pm
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Hi Mitsu.

Would it not be better for your wife to declare BR as well now that the house is being repossessed?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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Adam Davies

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Post by Adam Davies » Sat Jan 30, 2010 5:31 pm
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Hi
I would say that bankruptcy would be a sensible option as your wife will only pay into this for three years at a maximum of 70% of disposable income. This is very different to the 5 year, 100% disposable income for a possible IVA.
Is there a reason that she would prefer not to go bankrupt ?
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Andam Davies
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kallis3

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Post by kallis3 » Sat Jan 30, 2010 5:40 pm
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Mitsu is already bankrupt, so I would think that BR would be the sensible option now the house is being repossessed.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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mitsu9

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Post by mitsu9 » Sat Jan 30, 2010 6:58 pm
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hi she is happy to go bankrupt as that will be the end of it.it was only that she mentioned the possibilities of a iva.as im still br it probably is the easy way out.
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Adam Davies

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Post by Adam Davies » Sat Jan 30, 2010 7:22 pm
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Hi
I would go down the bankruptcy route and bring a close to it all. The danger of the IVA is that something will go wrong in the five years and your wife will be unable to finish it. At least with bankruptcy the debts are written off at the start and do not need creditor approval
Regards
Andam Davies
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