I would like to make an application to enter an IVA agreement, as I can see no way of resolving my current financial situation without incurring further debt.
I am a homeowner, and recently re-mortgaged my property with the Alliance and Leicester, on a 5-year fixed rate deal, with an early repayment fee. I have 21 years left on my mortgage, and the outstanding amount is £133,000 including this fee. I have a secured loan on the property with the Halifax of £25000, of which, approximately £23,000 is outstanding.
I was not informed of the property value during the survey carried out, but I think that the property is worth about £178,000, and estimate the equity in the property to be £22,000.
In addition to the above, I have the following unsecured loan and credit card balances:-
Creditor Balance Payment
Halifax Visa 8,274.42 £187.59
Egg £8,500.00 £169.52
Alliance & Leicester £10,585.09 £120.00
Morgan Stanley £3,819.79 £90.00
Capital One £4,155.00 £120.00
Marbles £5,343.58 £147.88
MBNA £6,663.40 £110.00
Northern Rock Loan £13,000.00 £164.19
TOTAL £60,341.28 £944.99
My earnings are £2065 per month, and my current outgoings are £1774, and for more than a year I have been forced to borrow money from one source to meet payments for another. This, combined with both interest rate rises, and payment protection plans has led to a situation where I can no longer meet the expected monthly payments on these accounts.
I have considered filing for bankruptcy, but feel that as I am in a stable job, an IVA agreement would be more appropriate, as I would be able to repay more than if I were made bankrupt, and would also be able to release equity in three or four years time, which would help to clear the debt completely.
I would also be in a position to make an improved payment offer should my financial circumstances improve during the period of the agreement.
I am aware of the pros and cons of IVA agreements, and accept that I will not be able to incur further unsecured borrowing during the term of any agreement.
Could you please let me know if there is any possibility of my application being accepted.
Thanks,
I.O.U.
