Following the separation from my wife, the IP has now drafted a proposal in order to severe our joint IVA for a remaining four years but I am concerned that it may not be acceptable to creditors as my dividend is rather low (around 10-20p). Variation Meeting is on 28th February.
We own a home jointly which was recently valued at around £100k - 90k for quick sale - we owe roughly £124k so significant negative equity.
We have continued to maintain our repayments (£790) to the mortgage companies (we have an NRAM Together mortgage and an additional secured loan) and currently have tenants in the property meaning we also have associated insurances/policies (totalling £167).
The rental income does not cover the mortgage so we are having to find an additional £267 per month in order to offset the difference.
Am I kidding myself here by insisting we keep the house going when there's absolutely nothing left to hold on to? - both my ex and I now live in different locations.
The tenants are receiving housing benefit which for the past two months has been late arriving causing some real cash flow problems...
Is it better to just keep paying the mortgage - increasing our future chances of getting another mortgage post-IVA?
Or would voluntary repossession / stop paying the mortgage make more sense?
What would be the ramifications of this - as the mortgages are included in our IVA documentation I guess the subsequent shortfall wouldn't be an issue but am concerned about the credit file in either case and worried that this might impact for the rest of our lives.
I would be very grateful of any input - it always seems that when you are stuck in a situation, someone else can often see the best way forward.
Last edited by Beatbox on Fri Feb 08, 2013 9:20 pm, edited 1 time in total.
"If you know how to spend less than you get, you have the philosopher's stone."
Benjamin Franklin
Sorry to hear of your troubles. The IP would not recommend your separate iva's if thy felt no chance of being accepted.
With regards to your tennants and housing benefit.....i woud look at www.gov.uk to read about the welfare reforms coming in ....housing benefit amounts may change from April and individuals may be paid less depending on their circumstances..... The number of bedrooms and the number of occupants will determine the level of housing benefit....use the link above or search for welfare reform on google for more info.
Hope others can give you reassurrance too .
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
An additional debt, from the shortfall in your property will not impair your credit record any more than it already has been - however this will mean increased claims in the IVA which will affect the overall dividend.
On the face of it, there does not seem to be any benefit in you retaining this property, and the £267 you are having to pay each month towards it could perhaps be used to plug the dividend gap by making additional payments.
As with all queries such as this, you should seek advice directly from your own IP as to the effect of all of the options.
