I need to accept it's time to act..

TeetersOnHeels

After months, maybe years of robbing Peter to pay Paul after my divorce I now accept that an IVA is the most realistic and achievble way to pay back my debt. I've done the CCCS Debt Remedy thing and that points to an IVA also. Before I take the next step of ringing round recommended companies, there are just a couple of things I've not really come accross the answers to while I've been reading this forum.
1) Currently I have approx £40,000 equity in my house. My unsecured debt comes to approx £35,000. Would creditors refuse an IVA on the basis that I have more equity than debt? (have a secured loan with £9000 outstanding and 3yrs to final payment that would have to be settled if I had to sell).
2)Of my £35,000 debt approx £20,000 is with my current bank. As they hold more than 75% of this debt, and this is the required percentage for acceptance, where do I stand if they choose not to vote in favour?
Any advice would be great - I already have a Bank Account with a bank I don't owe anything to/or are linked with any of my creditors - at least that's one thing I don't need to worry about!

debtinfo

20 out of 35 is actually 57% but you will need them to accept or its a non starter.

Is your mortgage with the same bank, if so it couldpresent problems

TeetersOnHeels

Bank is RBS, mortgage lender is Alliance & Leicester (think they may well be linked by Santander?)

lexie2005

I am not an expert but I would say IVA will be unlikely to be accepted as equity in home is greater, sorry!

Charco_2

Not entirely true!

Equity is £40,000 - only if the OP's current valuation of the property is realisable!

Also, for the purposes of remortgaging his property to realise the equity (ie not selling) he would only get 85% or so of the value of the property from a lender.

So on paper, what looks like £40,000 would in reality be much less... Plus you've a further £9,000 attached to the property so infact on paper you've only £31,000 equity (but I'd bet this is less to realise it!)

Is the property in your sole name? Or do you share it with a partner?

Yes you'll definitely need your current bank to agree to the IVA since they own more than 25% of the debt.

TeetersOnHeels

Hi -
And thanks for the repiles.
The house is in my name, single with a teenage son.
I'd love to be able to stick it out for the next 3yrs til the secured loan is paid off, then I'd be able to comfortably pay my debts, but at the minute I'm about £100 a month short, and thats before groceries/fuel come into the equation. Work for the government so no chance of any overtime, also work shifts, so no chance of additional employment.
Obviously I'm concerned that if I start the ball rolling and RBS don't accept I'll be well and truly up the creek!