Unable to meet debt repayments - help needed.

SusieT78 · 15 August 2017 at 4:14PM

sourcrates wrote: »

You misunderstand the IVA concept.

IVA' s suit people with property to protect, you don't have to sell your house, in year 5 you have to seek a remortgage, or make an extra year of payments instead.

But I agree with Fatbelly, an IVA at £30 a month is unheard of and isn't realisticly going to be an option for you anyway.

Thanks for the further explanation sourcrates, very much appreciated. It was this passage from Stepchange which made me think I might have to sell:
You have enough equity in your home to make an offer to your creditors in an IVA. Equity is the amount of money you can raise by selling or remortgaging your property. The amount of equity is the market value, less any money you still owe for it. This includes mortgages, secured loans and any legal charges.
This type of IVA requires you to either sell or remortgage your home to release the money.
When you enter into an IVA, your creditors will usually let you keep your vehicle but this depends on how much it is worth.
It's likely that your creditors will let you keep the vehicle you've told us about if the estimated value is
correct.

As I couldn't get a remortgage at the mortgage I assumed I would have to sell, but also, if I'm not making the full minimum payments to my non-secured creditors I can't see there's much chance of me getting a remortgage in 5 years time as my credit rating will be shot.

Thank you for all your help so far, I really appreciate everyone that has taken the time to help or comment.

sourcrates · 15 August 2017 at 5:13PM

I think the passage above describes what's known as a "lump sum IVA".

That involves you making a lump sum offer to your creditors to settle the debt you owe, this type of IVA has no monthly payments, just one lump sum, usually provided by the sale of your house or a windfall of some kind.

It differs to a normal IVA where any property is protected.

nicmalauren · 4 September 2017 at 6:36PM

Hi OP,

Just wondering how you got on, what you decided to do?

SusieT78 · 14 September 2017 at 10:58PM

I did manage to make all my contractual payments this month but I've prepared a budget and a letter to send to all creditors by the end of this month to let them know I'll be dropping to token payments until I go back to work (which will probably be on a part time basis a year from now).
I'm going to self manage a DMP with token payments until I'm working. Then once I'm working I'll start paying it back with what I can afford. Once the mortgage is paid off I expect I'll be able to start making larger payments as my children will be in high school by that point so I expect I'll go back to full time hours. I reckon I should be able to pay it off in full within 25 years. Even though at the moment it looks like it will take over 100 years, but that's only because I'm not working right now.
I have decided not to tell my partner for now. He knows we have a strict budget and let's me handle all the bills, so he's unlikely to ask questions thankfully!

fatbelly · 15 September 2017 at 7:22AM

fatbelly wrote: »

You have equity in your property. Don't go bankrupt. Don't sell your house, Don't try debt consolidation.

Keep paying the mortgage. Stop paying non-priority debts (when you're in a hole stop digging).

Your debt resolution will have to wait. Now you asked some questions in there.

can the creditors demand he gives me all his wages to go towards debt repayments? No

Is he liable for my debts as we have children together? No

Am I going to lose my house? (Have never missed a mortgage payment). No

Can the creditors force a sale of the house as there is some equity? No

Hope that helps

fatbelly wrote: »

You'd be better putting your £30 per month into an emergency fund.

Change bank if you can and pick up a switching bonus - you should never bank where you have debts.

Just read this thread again and earlier advice still applies.

Come back to us if you have any problems with token offers and when you are ready to start a proper debt management plan.

Mnd · 15 September 2017 at 10:42AM

My own personal feelings, is that you and your partner are just that, a partnership and the debts aren't just yours. He should be involved and informed. How are you going to keep this secret for 25 years! The longer he doesn't know the the harder it will be to break this news
Anyway, I realise it's up to you and I'm only giving my opinion. We operate on this is how much money we have (I don't even work any more) and this is what is going to happen to it.
Good luck

Unable to meet debt repayments - help needed.

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