IVA help

nickwilks7

Hi,
just after a bit of information regarding IVA's and if it's the right choice for me!
I currently owe £20,000 in loans paying £570 a month
£1,600 for tuition fees - not sorted payment out yet
and £500 into my ovrdraft!

I am bringing home £1,050 a month in wages, but my outgoings are higher with paying mortgage/bills etc so therefore getting further in debt!

Does anyone suggest an IVA or any other way of making life easier?

Cheers for any help

Foxy-Stoat_3

You have the mortgage on your own or partner?
Any equity in your home?

nickwilks7

It's my own property, but no equity!
Bought for £88,000, got £96,000 left to pay!

Tixy

Have you read this? IVAs are they worth it?:

Have you approached one of the debt charities for their initial advice?
Aside from your debt repayments are your outgoings (incl mortgage) less than your income?

Foxy-Stoat_3

Best approach one of the companies on iva.com and run through your situation with them, they should be able to help.

If you can fill out a monthly expenditure form as best you can first, excluding all loans/credit cards etc and see what you have left, multiply that by 60 and if thats 25% of your current debt then you may be able to go down the IVA road.

Not familar what happens if you have a mortgage with negitive equity tho...A friend of mine got into this situation and ended up with £30k debts and a 120% mortgage due to the market prices dropping and interest only mortgage, he went BR in the end but lost the house of course.

If, looking forward, after being on a IVA for 5 years you still have negitive equity then I would consider going BR.

FoggyBrain_2

Basically in a protocol compliant IVA (which most new ones are these days) the question of equity is dealt with in the last year. If there is more than £5k equity (at 85% LTV) then you will be required to attempt to release it. I say attempt because no-one will lend someone in an IVA more money anyway -- so the attempt will fail! In that event they usually extend the IVA by 12 months (which usually works in your favour, money-wise).

If there is less than £5k equity the IP will move to get the equity clause removed and you finish at month 60 as originally agreed.