IVA for 2.5M?

poppysarah

http://uk.news.yahoo.com/21/20090816/ten-neil-morrissey-in-millions-of-debt-5f8abb3.html

Go on, that's having a laugh isn't it?

dmg24

What is funny? What else do you suggest he does?

poppysarah

dmg24 wrote: »

What is funny? What else do you suggest he does?

The loans are against property - so why don't they sell em and reduce the amount he owes?
Or after 5 years does he get to keep the properties?

dmg24

I don't know the ins and outs of IVA's, but I do know from someone in a similar position (close to £1 million) that selling properties may not be the best option for any involved party.

We need to keep in mind that whilst £2.5 million may seem like a huge amount to most of us, to others it is not. Also people dealing in such levels of money are likely to have other sources of income, not necessarily in their own name.

I am impressed that Mr Morrissey is facing up to his debts and doing his best to pay them back himself.

poppysarah

So if he doesn't work much he could in theory pay back next to nothing and then have 2.5M of assets in 5 years?

dmg24

poppysarah wrote: »

So if he doesn't work much he could in theory pay back next to nothing and then have 2.5M of assets in 5 years?

I doubt that is his motivation (and I am not sure if that would be case anyway), he is not the type of person that would aim to benefit from such a situation (I don't know that just from watching him on tv, we have mutual friends).

Mr Morrissey has very high earning potential. He could easily earn £2.5m from other interests within a year if he wanted to.

poppysarah

So why doesn't he and pay off the debt?

If it's true he could easily pay it off, then he could, couldn't he? It'd be that simple? There's no advantage of paying off some piddling bit of 2.5M over 5 years and then getting the rest wiped off?