www.iva.co.uk

Hi

I took voluntary redundancy in January on the threat of complusary redundancy in March, we currently are having a hard time making our £300 per month payment,

At this time my question is more a general question than a pressing one.

We have a house valued at £82000, we owe £81000 on the mortgage and approximatly £19000 on a secured loan with Welcome Finance.

If our IVA was to fail and they petitioned for bankruptcy could they force our house sale as we owe £100000 plus £25000 for the IVA debt so £125000 against a valued house of £81000 approx as to me this seems not intelligent when they would get no money at all from the house sale.

If anyone can help with some suggestions

Hi,

Sorry about the redundancy and I hope you manage to find another job soon.

You need to speak to your IP if you haven't already done so, you may able to have a short payment break.

If your IVA were to fail then it is unlikely that your creditors would petition for bankrupcy you would have to do it yourself. However you are unlikely to lose your house as it is in negative equity as long as you kept up the payments on it.

We have had a payment break since Feb and it is the first payment in August that I am concerned about but you have put a weight off my minds and yes the loan and mortgage have both never missed a payment so sounds like we can keep a roof over our heads

Hi Andrew,

Welcome to the forum. First of I would consider changing your user name to retain your anonymity.

Creditors will not petition your bankruptcy - its far too costly for them. You should speak to your IP, as mentioned by Kallis - they may be able to organise a payment break for you whilst you search out new employment.

If you did want to petition your own BR, then the OR (official receiver), is not interested in bricks and mortar. What he is interested in is any equity he can realise. Seeing has you are in negative equity the OR is more than likely going to let you buy back the beneficial interest at a nominal fee of £1.

You must however, keep up repayments on your mortgage, and 2nd charge, otherwise these financial companies will start proceedings to have your house repossessed.

Gd luck.

Brilliant answer Sinking Fast - you could easily work in this profession!!

Great answer FF.

You will have to pay BR fees of £600 each and to sort out the BI in your house will cost £1 plus court fees of £211. If both of you went bankrupt that would be for each of you I believe.

Thanks Mel.

Anyone got any positions going?
[:D][:D]

MelanieGiles wrote:

Brilliant answer Sinking Fast - you could easily work in this profession!!

I don't know why I put FF - I meant SF!

Sorry![:D]

Thanks to all of you
Maybe this will not happen as I have taken a self employed job now I am just worring as the latest review came in and I think that we can only make a £225 regular payment instead of £300

How long is the maximum an IVA can run for as they have already added on 12 months because of the payment break, I was told it was 7 years is this correct

Jan - you have the Frugal Friends BBQ on the mind!!

You're right Mel! Not long to go now.

Andy, not sure there is a maximum term, but I think 7 is usually the norm.

IVAs can run for as long as they are set to - I recently dealt with a 14 year IVA, and I have had one running over 30 years for a very exceptional reason - however as Jan says it would be unusual to see a consumer case go for longer than 7 years.