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| T O P I C R E V I E W |
| sobroke |
Posted - 10 July 2008 : 17:28:18
Hi there our IVA has been rejected and I wondered if Bankruptcy was a workable option. We have a 64000 debt between 2 of us. NR have rejected 40p in £. We have negative equity in our house and our car is worth very little.
SB |
| 7 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 15 July 2008 : 14:34:41
Hi Melanie
many thanks for correcting my error.
Clearly my understanding of property within IVA was incorrect
Hi sobroke
so sorry my information was wrong, I do not wish to mislead you or anyone else on the forum. As an IP Melanie would be the best person to advise you re: property in IVA.
Of course whilsst my percentages were totally wrong the principle remains that property would be considered at a later date, so to a degree it depends on the market at that time. |
| melanie_giles |
Posted - 15 July 2008 : 08:40:55
That is not a correct explanation of the way equity in properties is dealt with in voluntary arrangements.
As I am sure that you are aware, given that you have already made an IVA application, the requirement is to have your property revalued during the final year, and you then are required to explore the possibilitu of refinancing to a maximum of 85% loan to value. So if your property is worth £100,000 you would be required to borrow up to £85,000. Any further monies raised would firstly be needed to discharge your current mortgage, and then the balance (subject to a £5,000 deminimus level) would need to be paid into the IVA at which time your IVA payments would cease and the IVA could be concluded.
Your new mortgage payments would not be required to exceed more than 50% of your current IVA contribution, and at no time would creditors force you to sell your property neither would you be required to hand over a sum equal to the full amount of your equity.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| John |
Posted - 15 July 2008 : 07:44:22
Hi SB
obviously you must choose whichever path you feel is best for you.
Be aware that if you do manage to get into an IVA then your property value will impact on this. It may be in negative equity now but 4 years from now, who knows?
Whatever equity there may be at that time, the creditors will most likely insist you realise that sum for them (you're hoping for a joint IVA so that would mean handing over a sum equal to every £ gained, over and above secured borrowings,in market value). This may lead to your having to sell. So after struggling for 4 years with little or no DI of your own, you then have to sell the house.
If IVA is right for you and your application is successful then great. Just be aware of possible repercussions later.
I don't know your reasons for preferring IVA, and they are, I think, in most cases, personal. I would not want to debate the pro's and con's of any of the available solutions. I am only interested in clients knowing the facts and financial cost of any given solution. The decision in the end is, as it always should be, with the individual.
Assisting where I can. |
| melanie_giles |
Posted - 14 July 2008 : 23:35:45
First of all let's try and undertand why NR have rejected your proposals. I would be happy to speak to them on your behalf, and if that does not produce a favourable response we can assist you with the bankruptcy paperwork which is very easy to fill out and I feel sure that you can manage this without external assistance - as most of the information will be readily available in your IVA proposal.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| sobroke |
Posted - 14 July 2008 : 21:01:27
Hi Melanie,
I think I'm going to try to ring your office tomorrow for advice about our IVA and if necessary we'll have to go bamkrupt. I just need to talk to somebody who really knows about both. I don't seem to have much luck with anyone who can compare the two.
If I'm pursuing bankruptcy would I expect to do it all myself or is it normal to have somebody do the paperwork etc..
Thanks
SB |
| JulianDonnelly |
Posted - 11 July 2008 : 11:20:54
Hi Sobroke and welcome to the forum.
Melanie has an excellent reputation, so why not give her a call to see if she can help with your IVA?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 10 July 2008 : 21:15:46
Hi there and welcome to the forum
Do you know why NR have rejected your IVA? 40p in the £ seems a good offer and I regularly get them accepted at much lower levels than this with this particular creditor? Would you consider representing the IVA, or have you simply had enough? With negative equity in your property, and a low value car, you have nothing to lose by declaring yourselves bankrupt, but it seems a lost opportunity for your creditors.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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