To IVA or not Iva

fatbelly

With an IVA you really need your situation to be stable and yours is not. So I would recommend that you do not enter an IVA at this time.

Concentrate on making payments to rent, mortgage and car finance. That will be difficult enough.

RAS

Have you pulled out your agreements with the HA and read them? Find the sections that forbid the lodger. Is it that they won't allow a second tenant, or are scared of additional occupiers who might be difficult to remove?

There's no tax to pay under the rent a room system, so this would be really useful so worth double checking. If you can do it, do go over to the housing forum here so you avoid fixed contracts etc.

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82145766#Comment_82145766

This may sound a little naive, but is anyone stable when they go into an IVA?? sorry to sound silly.

when you say "concentrate on the other payments" what do i do with the non proiorty stuff? im starting to get letters threatening CCJs etc, obviously i already have a couple but i do not want anymore, as i i may a well do the IVA??

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82145936#Comment_82145936

Yes it states that i cannot have a lodger as it is "affordable housing" any type of subletting is forbidden, they will allow a second tenant as long as they are on the mortgage with me. I am with a small housing assosiation and quite frankly they are pants, i had never heard of them before (and i work for a LA in housing)

ManyWays

Most people that go into IVAs do not have negative equity, priority debts and an IVA firm that says you can only afford £56 a month but will have to find another £44 from your budget….

Also mortgage rates are more than 4.4% that at the moment. If your mortgage rate goes up in an IVA and you are paying so little a month, your IVA is going to fail.

This is a very very unstable base for an IVA. I am pretty shocked that Payplan have suggested it. You should not consider this in my opinion.

How much negative equity are you in?

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82146106#Comment_82146106

i bought for £300k (£150k 50%) I recently had an estate agent value for £280k. (as i was considering selling to get me out of this hole) i owe £138,000.

my current lender is showing rates 6.45 - 8.65 % jheeeeeeeeze!

ManyWays

who is your current lender? no other lenders are going to touch you.

RAS

Has anyone explained:

IVA fees?

What happens if your IVA fails (30%) do.

What happens if your mortgage increases?

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82146114#Comment_82146114

Kent reliance - yeah i realised nobody will - i have just spoken to them and have put forward a request for 4 months of no contractual payments do allow me to clear as much as i can in 4 months. i have had confirmation i have been opt'd out of my pension today so that is an extra £100+ pcm i can chuck at the mortgage debt and hopefully meaning i can clear as much as i can to hopefully be able to take a fixed rate on jan 31st.

that will take a week for them to come back to me, she said that if that is a no, then interest only for 3 months. but the payment will be £436.78 then whatever i pay on top towards the debt- so fingers crossed the first.

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82146143#Comment_82146143

nobody has gone into that much detail as currently i 'cannot afford an iva', i then came here and wanted to just see what all of your brilliant minds suggested to do going forward. As obviously the mortgage is only one part.

HA has accepted 25 pcm

now to work out how to clear the council tax arrears, starting with this year, as i havent paid anything towards council tax this year…

spoke to step change yesterday and she suggested breathing space, and my friend has recommended "webcam modelling" which made my eyes jump out my head, but apparently its very good money! So something to look into