Absolutely distraught ... My creditors meeting was today , 2 rejections and one no vote, one of the rejections Is my biggest creditor so no 75% reached , one no vote , I don't even know what that entails , and one rejected as I'd placed an order within the last 6 months (shop direct) how on earth they think I knew my life was going to go belly up I don't know ! IP has advised they will continue to negotiate and I have offered an Increased monthly payment as I've just done the tax transfer from my wife's personal allowance and personal tax allowance has gone up so I have offered all this in to the kitty , not that it will make a huge difference to an already low dividend but it's an extra £300 a year . So worried that we are going to loose our house if I have to go bankrupt [B)]
So sorry to hear of your rejection but they must have checked your credit record?
I hope your IP can continue to negotiate and that it goes your way.
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
Not sure what my credit record has to do with it , my record was outstanding
Until February this year and my credit score was gleaming , but after 2 huge changes in circumstances I had no way of continuing with my financial commitments so have tried to sort things as quickly as possible for the creditors benefit and my own
As soon as an IVA proposal goes in the creditors know you have problems so this might be why they refused.
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
Further, you could consider a temporary DMP for, say, 6 months, and then try again.
In a BR, whilst it is true that your home may not be at risk if there is significant negative equity, it is also important to understand that you lose control of the asset, and that the Trustee has up to 3 years to deal with it. Most people would be unwilling to take any sort of chance at all in that regard, but that is a matter for you.
If you are going to look at a temporary DMP, and I will assume that if you were looking at an IVA as your first choice then a longer term DMP is somewhat unrealistic, then it may be an idea to approach someone who will administer one for you without fees, i.e a charity. That way, what you do pay to the debt in the meantime will be reducing the balance by as much as is possible. Should an IVA be possible in 6 months, using a commercial organisation for a DMP will see most of the money you pay in swallowed up in fees.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Equity is around £8000 , based on a market price of £78000 (will never know a real price unless I get it valued my self .
Total debt is £37000, offer is currently £150 a month although I have suggested I am happy for this to go up to £180. rubbish dividend I know but 5 of the 8 creditors accepted it !
If I go BR there is no way we could raise the 4k my wife would need to buy my half unless we borrowed it on cards and thats just ridiculous its the total opposite of what we are trying to achieve !.
You wouldn't be able to use cards anyway if you went BR! The OR would keep an eye on your property for two years and three months before deciding what was going to happen with it.
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
I doubt you would need find £4k if the £8k is gross equity, excluding costs.
First of all the redemption might include termination charges - ask your mortgage company to send you a redemption statement.
Then you have to take into account costs of sale etc - estate agents fees and conveyancing solicitors etc (plus VAT).
The the Trustee has to decide how much its going to cost to go to Court and force a repossession and sale. Plus the insurance, legal, bankruptcy taxes and the Trustees costs. All of which will amount to well over £4k so it will be best for the Trustee to negotiate a deal with your wife (or another family member?) instead.
I suspect you could reach an agreement to pay something in installments too for such a low sum.
If you can prove in negative equity the O.R. might simply disclaim their interest so the property reverts back to you.
Consider getting a valuation too if you haven't already.
I remember years ago when all we used to hear from finance institutions was "your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it " , Thats why I never have and all my debts are unsecured so why is my home at risk because I cant pay my debts ?
It's always been the same, and always will be. If you can't keep up with mortgage/secured loan repayments then you stand a chance of losing your home.
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
If you don't keep up payments to your secured creditors then you can lose your home through repossession.
If you don't keep up payments to secured creditors then as part of any Bankruptcy process that takes place as a result, the assets need to be sold to pay off the bankruptcy debts and costs and therefore the property can also be lost through Bankruptcy.
An unsecured creditor can also convert their unsecured debt via firstly obtaining a CCJ and then subsequently getting a charge against a property, which they can enforce.
Thats my point ... none of my debt is secured therefore I shouldn't have to risk my house by going BR !but yes I know thats the way the cookie crumbles.
