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| T O P I C R E V I E W |
| In 2 Deep |
Posted - 08 October 2009 : 19:53:59
Hi All,
I am a newbie and so confused.
I have spoken to 3 companies regarding an IVA, including VB and have all given sound advice. I have also consulted a BR specialist regarding our situation, and am so confused.
Basically me and my partner owe approx: 116K in unsecured borrowings to 9 different creditors. We only have 2 accounts which are in joint names equating to a joint debt total of 19k. The other 7 accounts are all in my name. Our house is in negative equity to the tune of 42k.
I have been advised by a BR specialist that rather than go down a interlocking IVA, I should declare BR, and the remaining 2 accounts in joint names - my wife would become accountable for.
Is this correct?
I was also advised that the OR would not be interested in the house, and my wife could buy the beneficial interest.
Is this correct?
Now the confusing bit. I was advised by an IVA company that because of the cost of servicing the mortgage and secured loan the OR could refuse the purchase of the beneficial interest due to the cost of servicing the mortgage/secured loan as a ratio to the clients earnings ?
Any advice would be much appreciated.
Thank-you.
Treat EVERY Penny as a prisoner. |
| 2 L A T E S T R E P L I E S (Newest First) |
| In 2 Deep |
Posted - 09 October 2009 : 13:12:11
Thanks Reviva,
I am initially going to look at the interlocking IVA route. But if my partners offer is rejected then BR would seem the obvious route.
Thanks for your reply.
quote:
Originally posted by Reviva UK
Hi
there are the technical answers and then the moral position that you may wish to take.
Solutions to debt:-
1. Refinance - this is a traditional fix by lowering the monthly outgoings and increasing the length of the debt. Ocean finance, First Plus etc etc. In the current economic climate this is very difficult to do.
2. Debt Management - Instead of paying around £2000 each month to your creditors for their contractual monthly committment you would pay your disposable income ( whatever that was ) in a pro rata manner. IF you can freeze interest and IF creditors stop taking court action then you can work out how many years it will take to repay the debt.
This is usually a considerable perios of time. If it is 10 years or more it is probably best avoided.
3. IVA - "little known government legislation" etc. Basically the IVA is a court ratified agreement between you and the creditors. It gives you the opportunity of avoiding bankruptcy and repaying as much as you can in a reasonable time frame ( 5 or 6 years ).
Good solutions for some people but you absolutely MUST have a good relationship with your insolvency practitioner because you will have a 5 year relationship with them.
( Vincent Bond are a reputable company and are recommended - Soeak to Andy Davie )
Bear in mind that 5 years is a long time and a lot can change within that period.
4. Bankruptcy - Not the easy option and often misunderstood. This is a good solution for many people.
You basically swap your debts for your assets. The official receiver is really interested in the equity in the house not the bricks and mortar. In your post you mention the problem with the OR and the beneficial interest due to the high 1st and 2nd mortgage costs.
I have successfully defended this position several times this year - although each case is different and it does depend upon the rental values for an equivalent house vs your combined mortgage.
You are also likely to have to contribute towards the debts via an Income Payment Agreement - This is for 3 years and is a percentage of your disposable income rather than all of your disposable income.
There is a lot going on and I would suggest you speak to one of the professional forum experts to go through each solution and see how it effects you.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions
Treat EVERY Penny as a prisoner. |
| Reviva UK |
Posted - 08 October 2009 : 22:38:26
Hi
there are the technical answers and then the moral position that you may wish to take.
Solutions to debt:-
1. Refinance - this is a traditional fix by lowering the monthly outgoings and increasing the length of the debt. Ocean finance, First Plus etc etc. In the current economic climate this is very difficult to do.
2. Debt Management - Instead of paying around £2000 each month to your creditors for their contractual monthly committment you would pay your disposable income ( whatever that was ) in a pro rata manner. IF you can freeze interest and IF creditors stop taking court action then you can work out how many years it will take to repay the debt.
This is usually a considerable perios of time. If it is 10 years or more it is probably best avoided.
3. IVA - "little known government legislation" etc. Basically the IVA is a court ratified agreement between you and the creditors. It gives you the opportunity of avoiding bankruptcy and repaying as much as you can in a reasonable time frame ( 5 or 6 years ).
Good solutions for some people but you absolutely MUST have a good relationship with your insolvency practitioner because you will have a 5 year relationship with them.
( Vincent Bond are a reputable company and are recommended - Soeak to Andy Davie )
Bear in mind that 5 years is a long time and a lot can change within that period.
4. Bankruptcy - Not the easy option and often misunderstood. This is a good solution for many people.
You basically swap your debts for your assets. The official receiver is really interested in the equity in the house not the bricks and mortar. In your post you mention the problem with the OR and the beneficial interest due to the high 1st and 2nd mortgage costs.
I have successfully defended this position several times this year - although each case is different and it does depend upon the rental values for an equivalent house vs your combined mortgage.
You are also likely to have to contribute towards the debts via an Income Payment Agreement - This is for 3 years and is a percentage of your disposable income rather than all of your disposable income.
There is a lot going on and I would suggest you speak to one of the professional forum experts to go through each solution and see how it effects you.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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