should i do IVA

claire44_2

Hi my partener and I have £72000 mortgage and owe the same in debt ! I know. lot of debt my partners employer reduced everyones wages by £100 per week for the same amount of hours at the same time I had just had our twins and couldnt afford childcare so that i could work, for the past three years we have been self employed and customers are hard to find at the moment.

we have been in a debtmanagement plan for the last year and have been approached to do an IVA, if we do it we will be paying £300 per month for 5 years then she said we would have to remortgage in year four and give the creditors 75% of the equity in our home, at present it is worth approx £110,000.

So we have estimated by the time it get revalued in four years probably be around £150,000 and we will still owe appox £65,000 on mortgage therefore equity will be approx £85,000 so we will have to remortgage for £63,000.

and will have paid £300 x 12 monthly payments = £3600 per yr
5 yrs = £18,000
therefore we will have paid them back £81,000. £9000 over! Plus because we are remortgaging we will have interst on that for the next 20 years.....

I don't see how we will benefit have I got this right or totally wromng can anyone explain IVA'S
Any help would be appreciated

Thanks
Claire

spenderblender

I would say that after being in an IVA and now trying my best to get out of it to go bankrupt, weigh up your options carefully. Read through some of the other threads on here and pop over to the BR board where they will give advice about your house if you go BR.

RAS

Claire


WHO is this denbt managment plan with and who has approached you to do the IVA???

toshtec

Have a look around and talk to various people.

My supervisor actually capped my equity to £4k also its not a forgone conclusion that you have to do a remortgage as what can also be done if a mremortgage is not possible is that you do an extra year of the IVA and then its cleared otherwise what is the point fo doin the IVA in the first place visit this site and ask the expert a question.

http://www.debtquestions.co.uk/forum/index.php

re the equity

claire44_2

RAS wrote: »

Claire


WHO is this denbt managment plan with and who has approached you to do the IVA???

were with Payplan, they suggested an IVA

claire44_2

toshtec wrote: »

Have a look around and talk to various people.

My supervisor actually capped my equity to £4k also its not a forgone conclusion that you have to do a remortgage as what can also be done if a mremortgage is not possible is that you do an extra year of the IVA and then its cleared otherwise what is the point fo doin the IVA in the first place visit this site and ask the expert a question.

http://www.debtquestions.co.uk/forum/index.php

re the equity

Thank you for your help I will contact payplan and ask them if they can capp the equity, thanks

Claire