IVA Dilemma

DaveLister

My bank has moved the goalposts, and decided they want to call in my £25,000 overdraft, cancel my credit cards, and want full repayment of an outstanding loan.

They know about a piece of land I have that has planning permission approved for domestic dwelling current market value £50 - 60K. They have proposed a secured loan 3% above bank rate to cover all my borrowings to them. This has all been happening over the last nine months. However I have now been put on half pay - if I sign I won't be able to meet the repayments. I believe also that IVA's can not include Secured loans.

I have quite a lot of other credit card debts over £20K, that largely has amassed over the last 12 months, So I was considering an IVA.

A couple of other pointers my total debt to bank is over £40,000 so I wouldnt mind losing the land if that would be the end of it.

I still however need to address the Card debt, which wont go away, and I won't be able to meet the minimum repayments.

And finally what sort of allowance are you allowed to live on, I dont drink, I dont smoke, but I am worried about keepin my two dogs. I am married with a daughter at home 6th form.

If any body has any Ideas would be glad to hear them
Many thanks

Charco_2

If the bit of land is worth £50k and your debts amount to £40k then really you wouldn't be insolvent - so an IVA might not really be your best option! Maybe as a one-off lump sum payment or something like that if it helped to get your bank off your back and buy you time!

Sorry, I see now, you've got £40 to that bank, plus £20k on other credit cards!?

You could really consider a one off lump sum IVA then. It would give you time possibly to realise the value of your asset (the land) and get the creditors off your back. If the land then sold for less than what you think your debts are it wouldn't matter!

Regarding your allowances: They are not lavish but do allow a comfortable living. It doesn't matter if you smoke or not, or if you drink or not. It doesn't matter if you eat three square meals a day. You will be allowed reasonable expenses based on your situation

Charco_2

1. Do not sign anything for your bank - they're basically trying to prefer themselves over your other creditors which they shouldn't be!

2. Where did the land come from? Will there be Capital Gains Tax to pay when you sell it? There may be other costs too which would eat away at the value of the land.

3. The allowances you'd have for a couple with one child would be somewhere between £239 a month and £392. You'd only be allowed £21 a month for pets... but since you've recently taken up smoking you'd be allowed a maximum of £60 for that... You can also give your daughter £10 pocket money!

DaveLister

:beer:
The land was split off from the house when we remortgaged. It has its own title and is joint owned by my wife and I. Current mortgage supplier has no interest in it.

You are right about the smoking. The stress has driven me to it...:rotfl:

Charco_2

Are the credit card debts in your name, joint names or a combination?

If you are selling a part of your own garden under 1.5 hectares there would be no capital gains but as it seems you have already split it off (legally) from your home then it is likely there would be a Capital Gain to be taken care of out of the sale...