I have over 50k debt and seriously considering an iva. I own my own home and a commercial property which I trade from. I have been told that both properties will not be forced into sale but is this absolutely true for the commercial. I accept that I will have to release equity. Please kindly advise. Thank you.
Hi. Presumably the commercial property provides the income which will be used to pay the IVA payments, so I couldn't see that being forced into sale. I also assume that you are self employed so it is important to find an IP experienced in self employed clients, as their needs are different to PAYE.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
This depends on what equity is available within the commercial property. If there is substantial equity creditors may look for a sale rather than monthly payments especially if the monthly payments total less than the value of the equity.
This could also apply to the marital home if HMRC are a major creditor. They often request properties to be sold and the clients move to rented accommodation where there is equity of the monthly mortgage costs exceed comparable rented properties.
It is dangerous to tell anyone that properties are always safe in particular when you are self employed with possibly trade and HMRC creditors.
I assume that you are self employed so you will need a face to face meeting with your IP before you proceed.
When you are seeking advice, it is important that you fully understand how it will be proposed you will deal with the any equity in the properties so speak to a few companies before you decide to proceed
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
You may have to raise a remortgage against your home or a possible secured loan. The commercial property should be unaffected unless there is significant equity.
Hi Jenny, It sounds as though you have given this a lot of thought, I would definitely agree with the others on this thread that your next step is to pick up the phone and speak to a few different IP practices. The advice shouldn't cost you anything and will help you make a decision how to proceed.
I work alongside Melanie Giles and Kelly O at PJG Recovery. Picking up the phone is the hardest part, from then on things WILL get better... For help, find our contact details at www.pjgrecovery.com or www.melaniegiles.com
Jenny there is a possible solution if you are a business owner of a ltd co and you own the commercial property and you have a pensions of various sorts, you can use the ltd co to setup your own pension company (called a SSAS) transfer the funds of the other pensions into your newly made SASS pension fund. One on the benefits of a SSAS you can buy commercial property, so as weird as it is, you sell it to yourself in other words you get your hands on your pension pot now. The asset now belongs to your newly made pension fund as an asset. Of course you have to feed the asset via your business paying the rental income to your new pension, how brilliant is that! It's just swapping asset for cash to pay the debt off maybe. A SASS can do so much more than this, give it a google it you think it might work for you
It is a big decision so certainly worth taking another opinion if you are not completely happy with the initial advice. You certainly do not want to risk your business or properties.
A SSAS beautifully engineered for business owners, one might eye it with suspicion!
"SASS pension practitioners" exist for this very purpose, for set up, then your newly founded pension scheme has to be registered with the pension regulator, no biggi as it turns out
I completed my IVA 2 years ago but 8 years ago I was in a similar position, surprisingly so.
As Michael says explore all options and talking to him, should be one of them!
Two last things if you do go down the IVA road I be inclined to get the secured loan clause struck out(I'm just saying)and don't tell your business bank manager, they get reaaaallly cross!
