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Terry.pc
Starting Member
2 Posts |
 Posted - 25 March 2010 : 14:41:10
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My daughter is 7 months pregnant. She married in 2008 and has a joint mortgage with her husband for £133000, after the past 18 months credit crunch the house is now worth about £125000. They both work full time, however my daughter has had a very bad pregnancy and is now signed off sick by her doctor until after the baby is born but is no longer being paid by her employer - They are on an approved IVA - 25K £200 a month - and pay £300 per month for 2 cars, essential as she has a 100+ mile round trip to work!
Phew sorry for so much info, is BR a sensible idea and if so what would be the implications be on their home, bearing in mind they will soon have a new born so being homeless isn't really an options - all help will be very gratefully received - thanks |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 25 March 2010 : 15:02:24
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Hi terry
welcome to the forum
the first thing that your daughter should do is speak to the IVA provider they may have some flexibility on the amount she has to pay each month or even help her with the next stage of their internal process
for the IVA to formally fail they will have to miss three payments and obtain a certificate of failure
IN BR it is likely that the only cars they would be allowed would be cars with a nominal value of £2K
It is possible that they would be able to keep the property
If the debts are joint, it is likely that they would both have to end up BR.
With a father on side helping you will ease their stress, well done.
you all may benefit from speaking to one of the experts, who can help guide you through the options available. I think all of the experts will allow a free consultation on the phone
From what you have typed BR may be the only option even if it is, you need to start helping them plan.
I used the services of Paul and his team at Reviva and found them really helpful
regards Richard |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 25 March 2010 : 18:03:34
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Hello Terry,
Sorry to learn of the stresses of your daughter and you too are stressed by all of this - (joy of being a dad!!)
As Richard P has said, the IVA must fail and to do that will need to have three missed payments (consecutive).
BR may be a good (best) option in the circumstances you describe.
Are the debts joint? If so, again as Richard P has said, it may be that both file for BR.
The property could probably be saved as it is in negative equity (like millions of others up and down the land).
Are there any arrears on the mortgage? Is there a second charge and if so, are there arrears on that charge?
As to the vehicles, the liklehood is that one will have to go (whether both or just one goes BR). The OR will probably allow a vehicle up to £2,000 provided they can demonstrate the need is essential for work etc.
I hope this assists in the thought process - please post back and I am sure advice will come forward for you and your daughter. My area of expertise is in the law surrounding housing issues - such as re-possession and how to avoid it and how a homeowner stands in todays climate with debts. I am happy to respond as any more questions come forward - I am on the forum most days and have been through BR - am almost at discharge (May) - have saved two houses and got a vehicle after my "nice" car was repossessed!
Again, follow the advice and experience given by Richard P - he has suggested a chat with one of the insolvency experts here - Reviva UK and Jones Giles are very good and their numbers are on the left hand side of the page.
They also need to speak to the IVA provider to sound them out.
quote:
Originally posted by Terry.pc
My daughter is 7 months pregnant. She married in 2008 and has a joint mortgage with her husband for £133000, after the past 18 months credit crunch the house is now worth about £125000. They both work full time, however my daughter has had a very bad pregnancy and is now signed off sick by her doctor until after the baby is born but is no longer being paid by her employer - They are on an approved IVA - 25K £200 a month - and pay £300 per month for 2 cars, essential as she has a 100+ mile round trip to work!
Phew sorry for so much info, is BR a sensible idea and if so what would be the implications be on their home, bearing in mind they will soon have a new born so being homeless isn't really an options - all help will be very gratefully received - thanks
"There are no problems - only solutions" |
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Terry.pc
Starting Member
2 Posts |
Posted - 25 March 2010 : 18:53:25
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Thank you for the replies so far - have started by speaking with the IVA company, who, to be fair, sounded very helpful. It appears that I had the figures wrong as my daughter has an IVA of about 7K and her husband 8K. Her husband has the opportunity to achieve quite a bit of regular overtime which has been fruitless so far as any extra income is offset against the IVA - would the situation be helped if I could settle his IVA? Not sure that I can but if my daughter's IVA was re-calculated based on her income I think that as a household they would be better off.
If they do decide that the BR route is unaviodable should I buy their 'interest' in their property? I have been advised that this will cost £213 and remove any doubt about losing the house during the BR. The mortgage and utility monthly bills etc they can afford on their joint income,it is just finding a way to escape from the IVA and car payments taht is crippling them.
Once again many thanks
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 25 March 2010 : 19:47:25
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Hi again,
Glad the forum has given you some good pointers. Please come back as you see necessary.
yes, you are right about buying the beneficial Interest (BI) at £211.00 plus £1.00 each.
Wish your daughter and her partner all the best, Richard
quote:
Originally posted by Terry.pc
Thank you for the replies so far - have started by speaking with the IVA company, who, to be fair, sounded very helpful. It appears that I had the figures wrong as my daughter has an IVA of about 7K and her husband 8K. Her husband has the opportunity to achieve quite a bit of regular overtime which has been fruitless so far as any extra income is offset against the IVA - would the situation be helped if I could settle his IVA? Not sure that I can but if my daughter's IVA was re-calculated based on her income I think that as a household they would be better off.
If they do decide that the BR route is unaviodable should I buy their 'interest' in their property? I have been advised that this will cost £213 and remove any doubt about losing the house during the BR. The mortgage and utility monthly bills etc they can afford on their joint income,it is just finding a way to escape from the IVA and car payments taht is crippling them.
Once again many thanks
"There are no problems - only solutions" |
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is BR a sensible idea ?
