Advise needed On Keeping My Flat In Iva,br

f7atbroke

Hello i'm new to these forums..in fact this is my first posting to any type of chat forum.Like many of the new people who have posted here i'm at my wits end and happy to find some people who maybe able to advise me.

(Trying to keep the numbers brief)I'm am at present in debt(excluding mortgage) £71000,accumulated on credit cards(natwest,barclays,hsbc,mbna,egg),
loans(egg,natwest).I've a together mortgage with northern rock(6.2% variable)the split being actual mortgage £80617 ,Loan £19765.With the aid of the people at payplan i'm trying to get my creditors to accept a dmp with my monthly surplus of £350,this however would mean taking a life time to clear the debt.Payplan have advised that if i go for an IVA my creditors will require me to separate the together mortgage and add the loan portion to the pool of creditor debts providing a greater monthly surplus.

In an attempt to reduce my outgoings and provide my present surplus ,i've moved in with my long suffering girlfriend.she is letting me stay rent free ,contributing to the electric ,water and council tax .I'm renting the flat out but with the current interest rate increases the rental is short of my monthly mortgage payment by almost £200(not good especially since i still haven't told northern rock about the rental).I've had the property valued and there should be £10000 equity.

Soooo.... with this info i'm hoping someone will be able to advise me on:
1) should i go for an IVA,bankruptcy or stick with trying to move my creditors to accept the dmp proposal?

2)How will my creditors view my flat in all of the above situations? i'm desperate not to loose my flat.

3)Would it be better that i move back into my flat even if this reduces the surplus for my creditors?

4)Is it true that if i go for an IVA or bankruptcy my creditors may not demand i sell the flat but may demand an interest in the equity whenever it is sold?Can you negotiate the percentage of interest they demand in the equity of the property or possibly buy it back?

5)Considering my level of debt what help if any do you think i can get from northern rock? as the variable interest rate is killing me(although i've not missed or had a late payment)

Thank you to anyone who takes the time to look at the mess i've gotten myself into.. any advice will be most greatfully accepted.....

rog2

Hi F7b - welcome to DFW. Your first post is, quite understandably, a little bit confusing, but don't worry - you will get some good advice here.
May I suggest that you make yourself a mug of tea, sit down and write an SOA (Statement of Affairs) listing your income, expenditure and debts - there is a 'sticky' thread at the top of the page, which will explain how best to do this. Then we can start to look at your problem.
I see that you are already speaking with PAYPLAN, have you asked them about IVA or Bankruptcy as a solution to your debts?
I look forward to seeing your SOA.
Cheers
Rog2

f7atbroke

rog2....Thanks for taking the effort to look at my nitemare .. i've worked through my state of affairs with payplan .. the result of which i've listed in my thread(a bit muddled i see).. i'm looking for info on what happens (could happen)in the senarios i listed.. i've spent several hours looking at this site now and am amazed and delighted to find such generous folks .. thanks

immoral_angeluk

I don't know anything about mortgages etc as we rent but from what I gather the only options you have if you want to keep your flat would be a DMP or IVA. But if you fell behind with payments on an IVA creditors can make you sell your flat to pay off the debts (I think that's how it works anyway.).

f7atbroke

immoral_angeluk... thanks for having a look i'm leaning towards giving up on the flat...i can't seem to move forward by holding on to it.... many thanks