Don't mean to be flippant but what's the point / benefit of IVA

DotNetter

fc123 wrote: »

Some IVA'as are 6 Years if connected to Northern Rock....don't know the full SP on that but could always find link.

eh! I'm considering an IVA with a NorthernRock Together mortgage so would be interested in hearing about this if you have any info please.

Cheers,


Wayne

johnthebrief

Unless it will affect your job (eg if you're a solicitor) there are almost no circumstances in which an IVA will be better for you than bankruptcy.

DotNetter

johnthebrief wrote: »

Unless it will affect your job (eg if you're a solicitor) there are almost no circumstances in which an IVA will be better for you than bankruptcy.

Can you explain this a little more?

As I understand it and IVA IS better if you are a home owner AND you have equity in your property or are likely to have equity in your property over the next 3 years.

The reason for this is because if you go BR and you have equity they will require you to free this equity immediately. Most people don't have friends/family who can buy this equity and so the house sale is forced - thus you loose your home and then you find it difficult to rent due to being BR.

Please correct me if I'm wrong, i've only been reading up for the last couple of days on IVA's and BR.

Cheers,


Wayne

johnthebrief

DotNetter wrote: »

Can you explain this a little more?

As I understand it and IVA IS better if you are a home owner AND you have equity in your property or are likely to have equity in your property over the next 3 years.

The reason for this is because if you go BR and you have equity they will require you to free this equity immediately. Most people don't have friends/family who can buy this equity and so the house sale is forced - thus you loose your home and then you find it difficult to rent due to being BR.

Please correct me if I'm wrong, i've only been reading up for the last couple of days on IVA's and BR.

Cheers,

Wayne

Essentially, the problem is that if you have equity in your property you'll never get the IVA approved without an agreement to put the equity in to the IVA fund, either by selling the property or remortgaging it. It'll be a condition of your creditors accepting. So, in bankruptcy or IVA you still "lose" the equity.

In bankruptcy, first of all you won't lose your home immediately - you get a year before the trustee can take any action to repossess the property. In fact, what the trustee will much prefer to do is sell your equity either back to you, or if you're married/living with someone, they'll sell it to your partner. This sale can usually be done at a healthy discount because it avoids the trustee incurring costs of litigating to get the house off you.

fiveyearplan

DotNetter wrote: »

eh! I'm considering an IVA with a NorthernRock Together mortgage so would be interested in hearing about this if you have any info please.

Cheers,


Wayne

You'd need to tell us more of your situation (preferably on a new thread) if to enable us to give more options for you.

DotNetter

fiveyearplan wrote: »

You'd need to tell us more of your situation (preferably on a new thread) if to enable us to give more options for you.

Already done this...please look at my other posts.

Basically £128k secured with nr and approx £60k unsecured (30 of that with nr). no idea about amount of equity but would assume it's not negative and have estate agents coming on Monday for valuations.

Cheers


Wayne.

debtfreenewbie

Does an iva not look better on your credit file? It is not easy deciding which way to go,we have 55,000 to pay off so a dmp is not an option.

fiveyearplan

IVA doesn't look any better on a credit file.

thewad

Why is a DMP not an option?

John

Charco_2

Sorry if i'm about to sound old fashioned or preachy but some people also like an IVA because it's a genuine attempt to address at least some of the wild amounts of debt they've run up!