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IVADougie
Starting Member
United Kingdom
15 Posts |
 Posted - 14 August 2010 : 22:06:40
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Hi all
Wonder if anyone can help? I am currently in an IVA but have just had a variation rejected which means I am considering Bankruptcy.
However, the one thing I am struggling with is the nagging feeling that if I give up my home now I will never get back on the property ladder in the future. With prices as they are I could see myself needing a deposit of around £65k (around 30%) to even get considered and then there is the issue of the BR label even after 5 years when the credit file is wiped clean. How on earth do you even begin to save that kind of money??
Has anyone any recent experience of this please and if so do you regret losing your house or did you manage to get back into ownership again fairly easily?? |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 14 August 2010 : 23:48:45
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Hi
The mortgage market is very difficult at present any you are right in that a large deposit is likely to be required.
You say that you wonder if you will get back on the property ladder so I assume you already own a property - what equity do you currently have in the house?
Going Br doesn;t necessarily mean losing the home. This is a huge misunderstanding.
If there is significant equity then your Insolvency Practitioner may be able to use the equity in the house to complete the IVA early. effectively a one payment IVA
Alternatively if there is little or no equity then the Official reveiver is usually not interested. Their job is to release money from assets so if there is no equity they are not interested.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 15 August 2010 : 20:36:17
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Hi,
Paul is right - post back with more detail - one of us will assist and guide you - an excellent site with a lot of excellent advice too
Richard (Housing)
"There are no problems - only solutions" |
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IVADougie
Starting Member
United Kingdom
15 Posts |
Posted - 15 August 2010 : 20:53:50
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Currently in circa £50k negative equity, I know I could keep the house in BR but I would be no better off that way than in the current IVA as I believe that the allowances for normal expenditure are lower and they don't allow even modest cars (£2k max??)
If I am honest I am looking for an easy way out and seemingly there aint one!
If we did go BR we would have no disposable income as my wife wouldn't be working but equally we could not pay our mortgage hence the move to rented would be the route we'd have to take. If we knew we could buy again in say 5-6 years we'd take the option but I doubt that would be the case, more like 10 years to save up and repair the credit files. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 15 August 2010 : 21:11:11
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BR certainly isn't the easy way out, but the allowances in BR are often more generous than in an IVA, and you don't pay over all your disposable income, only a percentage.
The OR generally allows a car of £2k-£2.5k if it's needed for work.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 15 August 2010 : 21:22:57
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Hi
I think that you need a conversation with one of the expert on the left and then look at what you are looking at.
BR is NOT an easy option, but can give peace of mind and a fresh start - BUT think hard and seek advice
Richard
quote:
Originally posted by IVADougie
Currently in circa £50k negative equity, I know I could keep the house in BR but I would be no better off that way than in the current IVA as I believe that the allowances for normal expenditure are lower and they don't allow even modest cars (£2k max??)
If I am honest I am looking for an easy way out and seemingly there aint one!
If we did go BR we would have no disposable income as my wife wouldn't be working but equally we could not pay our mortgage hence the move to rented would be the route we'd have to take. If we knew we could buy again in say 5-6 years we'd take the option but I doubt that would be the case, more like 10 years to save up and repair the credit files.
"There are no problems - only solutions" |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 15 August 2010 : 21:39:01
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If you're in an IVA then your IP should be able to advise you and they already have knowledge of your circumstances.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 15 August 2010 : 21:59:13
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I agree with Tracey that if you are in an IVA then you should always consult your IP in the first instance if you have problems.
If they can't help you, then come back to us for help. You can fill the forms in yourself online if needs be and there will always be someone on here or the sister forum to help you.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
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IVADougie
Starting Member
United Kingdom
15 Posts |
Posted - 16 August 2010 : 19:37:46
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| I've been liaising closely with my IP as there is still a chance that the IVA may be able to continue with some modifications. However the firm i use don't really advise on BR so will be looking for other advice. Any recommendations for BR specialists please? |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 16 August 2010 : 20:06:02
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The details of all the experts who post on this forum are in the experts section at the side of this page.
I would definitely recommend speaking to your IP though as they will have a good knowledge of the BR process.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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Topic |
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Getting back on the Property Ladder
