Read Articles that IVA is the option To Protect People With Mortgage

tksnota

Hi

I always read that IVA should be the path to take to protect one’s property with mortgage

1. If someone’s is in DMP and get a CCJ with restriction then I believe it will be much better than IVA, please advise if my understanding is correct

2. IVA will normally carry a term at 5 years to pay most of the outstanding loans with 30% success, if so what’s the driving force that a person opted for IVA aside from finishing it early?

3. Aside from the voting, why is it harder to negotiate F&F in IVA? Will the creditors offer discount same like in DMP?

fatbelly

It's more helpful if you think of IVAs as 'bankruptcy for those who can't go bankrupt'

The main reason for not going bankrupt, when other solutions are inappropriate, is that you have an asset to protect, such as a house with equity.

If there is only a small amount of equity, and you understand that the property will be valued in the third year, then bankruptcy can still be the better option.

IVAs are chronically mis-sold and appallingly poorly regulated.

tksnota

@fatbelly - what do you mean value in the 3rd year?

in my case if I get restrictions on my property but plan to live in it for 20+ years because I had kids below 5 years old what’s my best option? I’m looking combination of DMP plus agreed payment amounts from the outcome of the CCJs until I’m offered reasonable discounts by the creditors 

Will I still need to do valuation of the property as requirement for CCJs? I have HTB so worst case if order of sale do happen (which will be unlikely) then how will this exercise be executed?

Grumpelstiltskin

You say you 'always read'  Who is writing what you are reading IVA salesmen?

Only you can make the decision but you must be 200% sure what you choose is the best way forward, you have been given loads of information on your other threads so in the end it is up to you to decide.

tksnota

Before harming myself I had called and subscribed with companies that promised to help me.

A few of them called me at regular intervals plus provide me loads of articles pushing that IVA will be my best option.

This is the reason I asked  because this forum provides unbiased answers to me especially being new in this country I need to get educated before taking any actions.

BTW. No remortgage only new fix and will avail of this product until it is available until kids are 18+

fatbelly

tksnota said:

@fatbelly - what do you mean value in the 3rd year?

in my case if I get restrictions on my property but plan to live in it for 20+ years because I had kids below 5 years old what’s my best option? I’m looking combination of DMP plus agreed payment amounts from the outcome of the CCJs until I’m offered reasonable discounts by the creditors 

Will I still need to do valuation of the property as requirement for CCJs? I have HTB so worst case if order of sale do happen (which will be unlikely) then how will this exercise be executed?

In bankruptcy your house is valued in month 27 and the equity determined at that point.

If you are struggling to understand the implications of insolvency, a dmp is the safest option

Ccjs and charging orders are very rare so don't overthink. Cross those bridges if you come to them

RAS

And just remind yourself that the fees for IVA's are £6-9k and you could have to pay those on top of the whole debt if you got a windfall. Seen a few shocked folk to whom that was happening on here recently. 

And that those salespeople advising you to do an IVA get a referral fee for every punter they refer to the IVA provider. 

tksnota

can anyone tell me what's the difference with letter before claim, letter of claim and pre action letter?

The reason I asked because the forms from Citizens Advise are different from the debt camel link

I want to know which of these forms I need to use when for a potential CCJ

Links outlined below

https://debtcamel.co.uk/letter-before-claim-ccj/

https://www.citizensadvice.org.uk/de...%20you%20money

fatbelly

The Debt Camel link refers to the preaction letter and form that a creditor must send you, and give you 30 days to reply to, before starting a court claim.

The Ciizens Advice link shows the forms that a creditor can use to start a claim

tksnota

If a restriction has been successful, do I still need paying the creditor(s)? If so, can I pay any monthly amount I can as long I can afford it?

fatbelly

As things stand, you don't have any court claim, no ccj, no charging order and no restriction.

Let's try to help you where you are.