Looks like a great place to ask questions so here goes ..

[shopaholic]

So many questions...thinking iva is the only option as now unable to make min payts on credit cards...From looking on this Forum I know who I would like to help me through this and also this looks like a great place to ask questions so here goes...I have an endowment mortgage with an endowment policy-will I need to sell this to pay off some of the debt? Some of my monthly income is from bonus which is not guaranteed and fluctuates from month to month-how does this affect the monthly payment? I also have a second job all commission based which again fluctuates-how does this work???? Thanks in anticipation.

[Broke of London]

Hi Howtheheck?? I'm not 100% sure but believe an endowment policy would be included as an asset for the benefit of your creditors unless there are compelling reasons why it should be excluded. Your monthly income will be worked out with yourself so you are confident it is set at a realistic level. My best advice would be to make that phone call...all the experts on here are non-judgemental and extremely helpful so you will start to feel better straight away. x

[plasticdaft]

Quite sure the endowment would be seen as an asset. Bonus's and overtime will be explained by the company you choose to go with .Talk to a few companies listed at www.iva.com and see what they advise.

Paul

[kallis3]

I think an endowment will be counted as an asset unless it will be used to pay off the mortgage at the end of the term, otherwise how on earth are you going to do that?

Bonuses will be explained as Paul says and do visit one or two companies via the link he posted. The advice is free and impartial.

[MelanieGiles]

If the endowment policy is assigned to the mortgagee it is not available for the general body of creditors and will need to be used to ultimately pay off your mortgage in full or in part. If unassigned (more likely these days) you will need to include it as an asset on your statement of affairs and it is likely that it will need to be surrendered or sold for the benefit of creditors.

A view would need to be taken about your commission payments and second income, based on a worst case scenario. Any additional earnings would be captured in any event under the 10%/50% ruling.

[shopaholic]

Thanks for your replies. Starting to feel like there is some hope. have been putting off doing this for around 12 months and batting credit cards around. Feel mortified.The endowment policy I think is assigned as it was taken out to repay the mortgage (well part of it). relieved about this as we would have a mortgage of £45k to pay in 9 years and no way of doing it.
Could you explain the 10%/50% ruling as I cant find any info on this.
(have changed my name from Howtheheck??? as I have now registered and it sounded daft-dont have a split personality!)[?]

[kallis3]

If it's assigned then it should be ok.

The 10% 50/50 rule means that for everything you earn over your normal take home pay you keep the first 10%. Anything over that is split 50/50 with the IP.

Don't worry about the name change - it happens a lot that posters have problems initially!

[Foggy]

Jan, isn't the 10% you are allowed to keep actually the amount equivalent to 10% of your normal income, not 10% of the extra pay ?

On that matter -- check your draft when it arrives -- some IPs are still using a straight 50 / 50 split.

[shopaholic]

Thanks. So glad I found this forum as I was at my wits end constantly feel sick. reassuring its not just me. need to pluck up courage to break the news to my hubby eek. So pleased to have someone to talk to that wont judge me. Still have a million questions....

[kallis3]

Sorry, didn't word that properly - it is 10% over and above your normal take home pay.

[MelanieGiles]

Do be sure to check out that assignment of the endowment policy. Just because it was taken out with the intent to repay your mortgage, this does not necessarily mean that this is correct. Assigned policies are actually quite rare these days.