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cowboys
Starting Member
United Kingdom
3 Posts |
 Posted - 22 February 2011 : 22:32:04
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Hi Guys,
I hope someone can help as I don't feel I currently have any options whatsoever to get my life back on track!
I will try to keep it brief.. I am 2 years in to an IVA to which I pay £300 a month. I have comfortably made all my payments and I am not behind on any other outgoings as my wife and I earn a reasonable wage. I have just changed jobs and my earnings will drop by around £300 a month, but my main problem is my mortgage.
I currently pay £1314 a month for my mortgage ( £1000 of which is interest )which is now almost my entire basic salary. I have never ever missed a payment, however now I have taken control of my finances I now begrudge paying so much money for bricks and mortar. I was much happier in a smaller house with half the mortgage. Anyway, problem is I want to move to a cheaper house but I have around £25,000 of negative equity. I can't carry that over to a cheaper house because of course no lenders want to finance negative equity so it seems there is no way out except repossession.
Is there a way I can get out of this house without having to go bankrupt? We are fully prepared to go in to rented accommodation but if I sell the house I will be saddled with a debt of £25,000+ plus all the associated sale costs. I am inclined to just stop paying the mortgage and use the money to pay other bills for the next few months and let the house get repossessed. If I did that I would still be saddled with the debt for the shortfall but would I be able to then include that in my IVA? Or is letting my house get repossessed and going bankrupt to clear the lot my best option?
If I did go bankrupt, would this clear my current IVA as well or do I need to let my IVA fail before I could apply for bankruptcy? I appreciate I would probably have to pay my excess income over for 3 years but that is no different to what I do now with my IVA. I just want this massive mortgage off my back.
Any help or ideas would be greatly appreciated. Should I speak to my IVA company to see if they would take my mortgage shortfall on should my house get repossessed?
Regards
Carl |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 23 February 2011 : 07:06:24
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Hi Carl, welcome to the forum.
You really need to speak to your Insolvency Practitioner as even though you will have a drop in wages, if you have the house repossessed and move into cheaper rented, it may be that the shortfall can be added to your IVA, and you will have enough disposable income to fund new agreed payments.
This may not be possible, but only your IP can guide you on that.
Speak to your IP and then come back to us, we're here for advice and support.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 23 February 2011 : 08:52:42
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Hi and welcome.
Great advice from Viki and I do urge you to speak to your IP first as being two years in you're almost halfway to finishing.
Hopefully they can get something sorted for you.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
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cowboys
Starting Member
United Kingdom
3 Posts |
Posted - 23 February 2011 : 14:53:10
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Thanks for the advice guys. I am going to do that today and I will keep you posted.
Carl. |
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glafy
forum expert
436 Posts |
Posted - 23 February 2011 : 15:02:34
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Good Luck from me Carl & welcome to the forum. Let us know what happens.
"Good things come to those who wait".....I'm a patient person but this is taking the Mickey!! |
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cowboys
Starting Member
United Kingdom
3 Posts |
Posted - 23 February 2011 : 15:25:17
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| I have now spoken to my IP and they were pretty helpful in fairness. They are sending out new I & E forms and passing my case on to their modifications department to see whether they could consider modifying the terms of my IVA to accommodate my mortgage shortfall. Fingers crossed I suppose.... |
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Viki.W
forum expert
United Kingdom
2211 Posts |
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Is Bankruptcy my only way out?
