am I unable to obtain an IVA?

[david_b]

Hi everybody, am I to believe that I am unable to obtain an IVA as I have equity in property? I am also on income support and the prospect of working at the moment is bleak dure to my health.

[MelanieGiles]

Hi David

That will depend upon how much equity you have in your property and the amount you owe to creditors. If you have enough equity to cover all of your creditors in full, then you are not insolvent on an asset basis and would therefore not qualify for an IVA.

If your debts are more than your equity, then an IVA could be the perfect solution to your current difficulties, however you would have to release equity by either a re-mortgage, third party contribution or sale.

Sorry to hear about your poor health, hope this gives you something to think about in the meantime.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[david_b]

Hello Melanie, thank you for your quick response and your good wishes. I have debts to creditors totalling £85,000 and debts to my family (brother & father) of £38,000, which totals £123,000.

My two properties have a total equity of £120,000 and as I said previously I am not working, but on income support. Does this sound workable on an IVA with family included?

If so would are there charitable organisations outside of CAB that could approach the debtors with a one off settlement figure or would approaching a solcitors firm to deal with this matter be an idea?

Excuse all the questions but just trying to get my head around all this.

Many thanks indavance, David

[MelanieGiles]

Hi again

You are in a difficult position, given that you have substantial equity, but little means to take on additional secured borrowings to effect a release of this equity.

Why do you need two properties? Could you possibly sell one property to release money to substantially pay off the non-associated creditors, and deal with your brother and father at a later date?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk