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Been trailing this site for a long time now and we are looking to finally sort out our debt. Need some advice from people on here please. We have tried to release some money from our mortgage to pay off some of our debts but with our situation we are not a safe bet to loan money too, which puts us in a catch 22 situation, we have about 50,000 equity. What are our chances of getting accepted for an iva, we have not yet missed any payments but we are struggling each month to meet these. My biggest worry is our house,what happens if we are refused an iva?will we lose our house, this is something i cant find an answer to. Would appreciate some advice from people on here.
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  • judojub
    judojub Posts: 276 Forumite
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    Hi molly.
    How much debt do you have?
    If you haven't already done so then please get in touch with one of the following to discuss your situation. They will help you
    • Consumer Credit Counselling Service: Full debt help service. Link: CCCS Tel: 0800 138 1111 Opening times: M-F 8am-8pm
    • National Debtline: Full debt help service. Link: National Debtline Tel: 0808 808 4000 Opening times: M-F 9am-9pm, Sa 9.30am-1pm
    • Citizens Advice Bureau: Full debt and consumer advice service. Link: Citizens Advice or visit your local CAB centre (find nearest) Opening times: different for each bureau
    It may be that if you have enough equity to pay off all your debts then you would not be considered to be insolvent. It would be most unlikely that you would lose your house in an IVA but you would be expected to try and release equity.
    Also go to https://www.iva.com. There are a list of companies on there. Give 2 or 3 a ring for some free advice. They will be able to help advise you on your best course of action.
  • mollymaybe
    mollymaybe Posts: 21 Forumite
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    thanks judojub for replying so quickly, we have about 65000 so wont be able to pay all of it off. If we could re mortgage we would do so but we have been refused twice now. Do you know what people do if they have had their iva refused, our biggest debt is with Barclaycard and i have not read any posts that tells me what they are like. I think im worried most about not being able to get accepted, living on a budget is what we have been doing for some time now as all our money gets paid out so there is no extra cash. I think being on an iva will most probably be the best option for us. Thanks for the advice i will contact one of these asap.
  • judojub
    judojub Posts: 276 Forumite
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    Is £50k the actual equity you have in your house or is that just a guesstimate?
    I would suggest that you definitely ring a couple of the companies in the link I posted. Within an IVA the norm these days is that you would be expected to try and release any equity in the final year of the IVA. This, at the moment is virtually impossible for most,so the alternative is that most people will have their IVA extended for another 12 months.
    I honestly have not seen many IVAs rejected lately. Please ring around tomorrow and find out what your options are. There will be a solution for you and they will put you on the right track. As long as you keep up payments to your mortgage your home will be safe.
    I am fairly new to this myself, but please keep posting as there are many on here that can offer you sound advice to set you on your way. x
  • mollymaybe
    mollymaybe Posts: 21 Forumite
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    50000 is a guess, but we should have 45000. I will contact the people you suggested and keep posting on here, i think this site is a godsend and the support is fantastic. I have been reading posts on here for a while now before plucking up the courage to face up to our debts, head removed from the sand at last. x
  • judojub
    judojub Posts: 276 Forumite
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    We have all been there molly. There will always be a solution to your problem. You are not alone. Many people on here have gone through so much emotional turmoil to finally come out the other side.
    Please keep us posted and let us know how you get on. Just remember though, you're not alone! x
  • mollymaybe
    mollymaybe Posts: 21 Forumite
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    NatWest hold our mortgage and will be one of our creditors to the sum of 20000, how will that work? will that cause us a problem.
  • judojub
    judojub Posts: 276 Forumite
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    If you decide to go with the IVA then you must open an account that is not connected to your creditors in any way! Coop Cashminder account is a good one. Very IVA friendly. Yorkshire bank is also a good one so I have heard. Natwest Step account too, but that would be no good as you have debt with them (..
    You need to get on the phone tomorrow, first thing and discuss your situation. Go from there. x
  • judojub
    judojub Posts: 276 Forumite
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    molly.
    Just wanted to clarify that you can't do anything about having your mortgage with the Natwest. Just meant that you will have to change bank accounts that you have salary go into and DDs come out of if the bank you use is one of your creditors!!
  • FavDaughter1
    FavDaughter1 Posts: 300 Forumite
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    Hi, Judo has given you good advice. ring & talk to some IPs. but also very important as a joint 1st on the list you need a "basic" bank account away from people you owe £ to, we went with CO OP,you can also use the Post Office as a branch to do your banking with CO OP which is very useful if there isn't a branch nr you. this will protect your wages so the bank can't just take it against the debt. you won't be allowed to have any overdraft if in a IVA, but we're all coping!:)

    it is very scary to acknowledge the situation you're in - been there got the t-shirt!:eek::eek:

    make those calls today,you'll feel so much better once you know what your options are.
  • debtfree2016
    debtfree2016 Posts: 325 Forumite
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    HelloMollyMaybe

    House prices are normally valued on average prices within the area and current it's a buyers market which values your property down, when speaking to IP's they will check the value of your house online. I have a creditcard debt with the Halifax who happend to be my Mortgage provider.. i'm not worried as long as i make my Mortgage Payments on time they can't moan do anything. I tried applying for a loan with Halifax to pay off my Halifax Credit Card they declined as they wanted the interest on the Credit Card, they also said that you cant just move the credit over even though they are the same company.

    Now they will lose a lot more on the credit side.... oh well.

    Good luck and your are on the best forum for this
    Never make assumptions always ask questions>>>>>;)
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