iva accepted in dec 2009 advice please

skintflint103

There's no point scoring from me, just point making. Before I put my oar in people are content to gloss over all of the detail, wherein the devil lies, from IVAs . I merely pointed out that no one should willingly allow a restriction recorded at land registry freely and without disent for a debt they have no part in. so I'm a bad man for that? My scenarios relating to IVAs ARE sick,but real. they should not happen and people should be made aware of them . If you don't know you don't deal with real people or you are in denial or payroll.Here we are now examining these scenarios. so would you rather we did not and just kept the newbies (of which I'm one) in deep dark ignorance?. Fear and ignorance is what debt companies trade on except some smile whilst they tell the tale. People are here for knowledge, i have some based on 25 years of mortgage broking and debt counselling, if people don't want my input they don't have to read it. But I have no allegance to any company or type of debt advice. The thread is only a non sense when the facts are withheld

Charco_2

If you have in your example 40k of debt (assumed unsecured) and you have insufficient income to service the debt I would say that you are indeed insolvent unless you want to sell the property to repay creditors.
To be honest, it doens't really matter what you would say. If you have an asset whose value outstrips, or makes a SERIOUS DENT in, your debt then you are NOT insolvent. It's not a judgement call, it's not a guess, it's black and white. If can afford your debts - even if it means selling an asset - then you are not insolvent. It's just a simple fact! It's not about "wanting" to sell your property it's just the pragmatic law. You can't take money from someone ANYONE - a bank OR an individual - buy an asset and then refuse to pay back the money simply because you've got no CASH.

This I admit is a first class example of IVA wins. If you have sufficient income to pay an IVA you will get one. This is a matter of do you wish to keep or dispose of your assetts.? Lets not forget that if your partner does not want to sign a mortgage application they do not have to if they are not indebted. therefore they should not sign a restriction over their property passing an interest to another party. That would commit them to a future remortgage for a debt that is not theirs.
True. If my husband is in debt, why should I remortgage my property to help him out!?
1. He's my husband and despite the debts legally not being mine, he has value in our shared asset and if he doesn't deal with the debt sooner or later the creditors are going to come after his house anyway. I mean OUR house anyway. I wont lose my share of the equity but i might have to increase my mortgage repayments in the long term but that's still better than him paying back ALL his debts plus interest over the next 15 years isn't it?
2. Even though the debts are not legally in my name, i did benefit from running them up - he didn't go to Mauritis alone! He does drive me around in the car! The radiators being on in the house do warm me up too...
(all hypothetcal, i don't have a husband)

And anyway, as we're now discussing, FOR THE THIRD TIME, the restriction does not allow an IP to take ANY EQUITY!

I really could'nt care less about your personal insults and snipes at me, I'm solvent. Good for you x

The people reading are not or would not be wasting time here. The point is it should make them take another look before commiting to a 5/6 year bankruptcy. You hate that phrase don't you?. Nope.

I have to praise your knowledge of IVA practice though, first hand experience is priceless.
Yes it is.
It's a pity you forgot to mention all the 'Devil in the Detail' earlier. Wolves? little red ridinghood springs to mind here.
And now it finally all becomes clear where your delusional "I'm so clever" rants are coming from...
1. You think it's some kind of secret that I work in insolvency - a secret only you were clever enough to work out! Sorry to break it to you, I'm pretty sure everyone on this board knows - i've said it often enough! AND
2. You think that people who work in insolvency are hand in hand with the banks - the banks hate insolvency! If you're looking for someone to pay you back £20 and someone steps in to say "how about you accept £15 and I'll keep £5 for brokering the deal" Would the broker be your friend? Thanks for my tenner mate!

There's no point scoring from me, just point making. Before I put my oar in people are content to gloss over all of the detail, wherein the devil lies, from IVAs
I'd love to start to amalgamate these threads - you're not the little boy who saw the Emperors new clothes!
I merely pointed out that no one should willingly allow a restriction recorded at land registry freely and without disent for a debt they have no part in. so I'm a bad man for that?
No. Well kind of yes actually. It's nice that you'd want to offer your experience and advice but it's not actually helpful. There's no IP Boogeyman coming to take your home away. You have no debt to the IP so he has no power to take your home away or take equity that you're not offering, ye know, as part of your VOLUNTARY Arrangement!

My scenarios relating to IVAs ARE sick,but real.
I think ChooChoo may have been referring to your recently deleted "prison cell" rant
they should not happen and people should be made aware of them . If you don't know you don't deal with real people or you are in denial or payroll.
It's a good thing you were here to reveal the truth - which is what exactly?
Here we are now examining these scenarios. so would you rather we did not and just kept the newbies (of which I'm one) in deep dark ignorance?. Fear and ignorance is what debt companies trade on except some smile whilst they tell the tale. People are here for knowledge, i have some based on 25 years of mortgage broking and debt counselling, if people don't want my input they don't have to read it. But I have no allegance to any company or type of debt advice. The thread is only a non sense when the facts are withheld

foreverautumn

What has also been forgotten in this argument amongst the experts. All new protocol compliant iva's state that if there is less than 5000 equity then your iva will finish. You will not be expected to remortgage for less than this. If you have more equity than this but you have tried to remortgage and are unable then normally your payments will continue for a further 12 months. If you are able to remortgage then your new mortgage payments cannot exceed 50% of your current iva payment. Hope this helps.

Charco_2

Actually the new mortgage repayments cannot increase by more than 50% of the monthly IVA repayment. But other than that well said

(And thank you for bringing the thread back on track)

EDIT: Also almost all IVAs will have a clause in that states that you will not be expected to sell your home. (So it's a remortgage or an extra year - unless YOU decide that selling is something you'd rather do)

EDIT: Also, because you're not selling, the amount of equity you have will be determined on roughly 85% the value of your home - no mortgage company will lend you more than this.
- if you have a £100k house and a mortgage for £85k then you have NO EQUITY for the purposes of your IVA.
- if you have a £140k house and a mortgage of £100k then you have equity of only £19,000, (not £40k) and half of this belongs to your wife... so just under £10k to offer your IVA... and there'd be costs to relase this equity of perhaps £2k so really you'd have about £7k to offer your IVA... so really you'd just better extending your IVA and making 12 token payments towards this outstanding amount!

i_believe_in_angels

I have just been sent a restriction form to sign on my property (my husband also needs to sign) is this common practice?.And if I sign this does this still mean I DEFINATELY do not have to sell my house if I cant re mortgage?
Charco or Choo Choo your reply would be appreciated thankyou :A

Claret40

Hi I am very interested in how this conversation is going but feel sometimes totally confused. I have been advised about going down the IVA route and I have currently got my house up for sale. I am in a DMP paying £200+ for the next 15 yrs and thought by selling my house I could pay the debts off but due to house prices falling over the last few years am not going to realise the amount needed to pay off my mortgage and debts. Is IVA still an option if I sell my property, will they want all the money I realise from the sale - feel confused and alittle frustrated

foreverautumn

i_believe_in_angels wrote: »

I have just been sent a restriction form to sign on my property (my husband also needs to sign) is this common practice?.And if I sign this does this still mean I DEFINATELY do not have to sell my house if I cant re mortgage?
Charco or Choo Choo your reply would be appreciated thankyou :A

I am sure Charco will be back on tomorrow, the restriction form is just that. It is so you cannot sell your home, without first getting the consent of your IP. No you will not have to sell your home if you cannot remortgage.

foreverautumn

Claret40 wrote: »

Hi I am very interested in how this conversation is going but feel sometimes totally confused. I have been advised about going down the IVA route and I have currently got my house up for sale. I am in a DMP paying £200+ for the next 15 yrs and thought by selling my house I could pay the debts off but due to house prices falling over the last few years am not going to realise the amount needed to pay off my mortgage and debts. Is IVA still an option if I sell my property, will they want all the money I realise from the sale - feel confused and alittle frustrated

It is really something you could do to discuss with an IP. But if there was enough equity after the sale, you could propose an full and final settlement iva with the funds from the sale. Seek some advice it does not cost you anything just a phone call. Make sure you speak to someone that does not want a fee up front.

Charco_2

IbelieveinAngels, as ForeverAutumn says, the restriction is simply to alert your IP if you sell the house without agreeing with him/her. If you are concerned, speak to your IP about it on the phone and ask him to confirm this - in writing if you wish. The point is, you are entering a VOLUNTARY arrangement, so its about what you are offering (or VOLUNTEERING), not what the IP or your Creditors are taking!

Claret, if you are considering an IVA, DO NOT SELL YOUR HOUSE just yet. (if it's already too late to not sell your house then try to keep as much the proceeds as you can safe in an account with a bank you owe no money to).

Find out your options first - speak to a few companies in different fields and weigh up the advice they have given you (an IP, CAB probably the CCCS - and maybe a DMP company but i can see they've given you your life sentence already).

This is going to depend on your Disposable Income too you see.
- You might have no Disposable Income but your creditors might accept a one off lump sum payment into a 6 month or 12 month IVA with the proceeds of your house sale (minus a couple of shekels for re-location costs for you)
- You might have a sufficient Dispoable Income that your creditors will feel that a lump sum IVA is not suitable and you should pay the full 60months generally required for an IVA. You could stay in your current house and try to release the equity in four years time.

It really depends on the full picture of your situation.

Who advised an IVA for you? (I'll guess it was your DMP Company now that they've picked up your first few payments to cover their admin costs). Regardless a 15 year DMP is a joke, and would probably last a lot longer because of interest and charges.

As Forever says, ring a couple of companies - dont give away too much of your contact details until you're satisifed and cetainly don't pay a penny for talking to people. Companies earn their fees for the solutions they provide.

(I'll come back to this tomorrow because i feel my answer is all over the place)

Choo_Choo_4

Claret40 wrote: »

Hi I am very interested in how this conversation is going but feel sometimes totally confused. I have been advised about going down the IVA route and I have currently got my house up for sale. I am in a DMP paying £200+ for the next 15 yrs and thought by selling my house I could pay the debts off but due to house prices falling over the last few years am not going to realise the amount needed to pay off my mortgage and debts. Is IVA still an option if I sell my property, will they want all the money I realise from the sale - feel confused and alittle frustrated

Yea I wouldn't be selling the property until you have sought professional advice first from an IP (or other professional) ...
A lot of people make the mistake (albeit they might think they're doing the right thing at the time) of selling their home and using what little equity they might have left over to clear SOME of their unsecured debts. But that doesn't help with what's left - granted monthly expenditure will probably have decreased leaving more money to offer creditors each month BUT ... there are better solutions ...

Constant phone calls and letters from creditors demanding mone can drive people to extremes and often affects your health (is it really worth this?) - easy for me to say though ...

As Charco has pointed out - if you DO sell the property you might be able to settle your debts in what is called a ONE-OFF IVA .. I'm not going to repeat everything he has posted but I do agree with it ...

Determine first how much equity there is in your property (remember equity is taken @ 85% of the value of the property MINUS your mortgage ... so if this only leaves you with £7-8k equity and £20k+ (or however much) then selling your property is not necessary unless this is something that you WANT to do ... you could just do the IVA for the same payments your making to the DMP and either remortgage in Yr 4 OR extend IVA by a year depending on the level of equity in your property.

Talk to a few IPs and get some advice (again for FREE - sorry for harping on about this - it's just that some people this if you pay for the advice it'll be better - NOT THE CASE!!!) - you CAN'T be any worse off than you currently are: paying £200+ in a DMP that will go on forever and contemplating selling your property ...