Creditors Meeting Looming

icecube2009

Charco wrote: »

Sixteen years! Another life sentence handed down by the CCCS!

It's kind of funny (not ha-ha funny - funny quirky/strange) that you would be of the impression that an IVA is not for you because you have a mortgage, when most people on here would tell you that unless you have a mortgage then an IVA is not for you - which is not really true either!

The IVA wont deal with your Mortgage, it is only for UNSECURED DEBTS... but it will allow you to protect your asset.

There are a few way to look at releasing equity i your property in an IVA and they each depend on how much equity you have to release:
1. Remortgage
2. Secured Loan
3. Payment from third party (wife or brother or mother or cousin or best pal...)
4. A one year extension to your IVA from five years to six
5. Sell your home

They are all farily self explanatory but the first thing really is to consider how much equity you would have. Firstly take the estimated value of your home and multiply it by ".85" to find 85% of the value of your home. Then subtract the amount of your current mortgage. (Half it if the home also belongs to your wife/husband/partner). THIS is the amount of equity you have for the purposes of your IVA. (No mortgage lender will lend you more than 85% of the value of your home so you cannot be expected to release more than 85% of the value of your home... your IVA will also stipulate that you will not be forced to sell your home - you can decide to sell it yourself if you want but then you might have to bring in more than the 85%. Also if you're going to sell, then why would you do an IVA?)

Your IVA will probably be extended for an extra 12 payments if your equity is less than £5k. Also if you CANNOT get a remortgage or secured loan then the IP/creditors may ask for an extension.

Sorry not been online & only just seen your reply. Thanks, it makes sense now, I agree the 16 years that I am looking forward to with the CCCS is in fact a nightmrae, and its only 16 years if everyone agrees to stop interest which at the moment they havent, i will be 59 in 16 years so probably realisticly not looking at being debt free until I am in my 60's!
DH wants to go with the IVA, I am still not sure, seems like a big decision to make? or am I being silly?

Nargleblast

No you are not being silly, it is all very daunting when you first look into these things. It took you a long while to rack up your debts so a few days or weeks longer whilst you get all the info and make your mind up will not hurt.

Max_1066

It took me a while to go for an IVA so do give it careful consideration and weigh up all the options. As mentioned above CCCS had me on a DMP that would have lasted over 15 years !!

The advice from Charco above is spot on.

It's ironic that the banks have clamped down on mortgages so if you're forced to remortgage as part of an IVA its highly likely you won't get it unless there's a lot of equity.