Debts what the best road to go down NEED HELP

LAMMESH703

This is my first posting after reading through as much as i possibly can.

Need a bit of advice as getting confused.

Firstly.

We owe approx 58,000 in debts
Owe 48,000 on own mortgage valued at 80,000 may have gone down now
We pay our debts through payplan at the moment
Have three debts linked to land registry
and countless defaults, ccjs, etc.

By paying paypal as we thought this is the best way, we will be paying for the
next 15 years and not having much money left and not much of a life.
We have looked at IVA and bankrupcy but get quite scared by this.

We dont want to loose our house so what is the best road to go down.
Can anyone advise or been in our situation and got out.

thanks

skintandscared_2

LAMMESH703 wrote: »

This is my first posting after reading through as much as i possibly can.

Need a bit of advice as getting confused.

Firstly.

We owe approx 58,000 in debts
Owe 48,000 on own mortgage valued at 80,000 may have gone down now
We pay our debts through payplan at the moment
Have three debts linked to land registry
and countless defaults, ccjs, etc.

By paying paypal as we thought this is the best way, we will be paying for the
next 15 years and not having much money left and not much of a life.
We have looked at IVA and bankrupcy but get quite scared by this.

We dont want to loose our house so what is the best road to go down.
Can anyone advise or been in our situation and got out.

thanks

Can I just ask a couple of questions?

I presume you're currently on a DMP with Payplan, yes?
The debts you have linked to the land registry - do you mean that these are charges on your property, to be discharged when you sell? If so, how much of the estimated £32k equity do they eat up?

Basically, if you go bankrupt it is likely you will have to sell your property to pay off some of your debts, unless the value has dropped considerably and there isn't now enough equity to make that worthwhile.

If you go down the IVA route then you will have 5 years of payments ahead of you instead of 15 years, and there is every chance you will end up keeping your property, BUT it is likely that you will be expected to remortgage in year 4 so that you pay as much of your debt off as possible. So bear in mind that even though the IVA is finished after 5 years, you then have increased mortgage payments from the refinancing.

Hopefully someone with more experience in these situations will be along shortly. I didn't just want to read and run. Best of luck with whatever you decide to do.

LAMMESH703

Many thanks,

I sort of worked out the IVA part myself, but was not quite sure. You have now
confirmed what I thought.

Many thanks

bubblesqueak

I, personally, worked out what was important to me most of all and the answer was def. 'I must keep my daughter's home at all costs' so I chose the IVA route. I completed mine last year in yr 2 and my husband will complete his on time. Whilst we have a bigger mortgage, we can manage it and we've kept our home and hopefully one day will be able to start on the more competitive mortgage rates so bringing it down. It's allowed us to have another baby and the increase on the monthly mortgage payment is far less than we would have had to pay in a DMP. It may not work out that way for you but my IVA was with PAYPLAN and I can't praise them enough. They were brilliant for me. They advised me that as a DMP would take 15years and becuase I had some equity, that an IVA would be better. Good luck.

baileybee

We are awaiting all the budget sheets etc to come through to us from business debtline regarding an IVA. At the moment we are insolvent (inc the equity on our home) on paper but we may be showing as insolvent in another months' time. We are still unable to pay our debts off without selling the house which absolutely do not want to do - will we still be allowed an IVA if on paper we are solvent if we include equity in our home?