Can I protect equity with unsecured debts?

C14re

Ive been trying to get clear advice from a few places but it has been conflicting.

My income has recently dropped by £1000+ pm and is now made up of benefits alone.

I have a mortgage 3.75% remaining term: just under 7yrs. Currently £170k equity

No secured debts

No arrears on priority debts

Unsecured debts of £34k

After paying Dd and monthly costs have about £80 left.

If I enter into an IVA can the debts come after my house when its finished?

Or is that the risk with DMA?

I dont have any chance of remortgaging on my income, and would definitely increase my rate if I did.

Due to mental and physical health my income won't increase.

Is there any way this is possible?

RAS

We may need a little more information but…

You need to stop paying your consumer/unsecured debt now. Very little will happen, other than pre-programmed calls, texts, email and letters. Everything important will be via snail mail.

When your current deal ends, you can renew your mortgage with your current provider without a credit check.

The additional issue may be how you fund the mortgage given you can only claim MIA, once you become eligible.

You may also be or become a candidate for write offs, in time.

C14re

Thanks for the response.

My mortgage is fixed for the remainder of the debt. Its got just under 7 years, then it will be repaid. Im nearly 60.

CAB said I have to sell my house to pay off the debts, which frightened me to death. I wouldn't be able to buy another. I'd be in a yet more unstable position.

My son has set up a SO, taken on paying the mortgage.

Even with that help, im left with £80 after dd bills and essential living costs.

fatbelly

Please complain about CAB. You got a rogue adviser if that is what they said. At the very least that needs investigating, but probably more.

https://www.citizensadvice.org.uk/forms/make-a-complaint/steps/complaining_about

Having said that that was completely incorrect, let's move on.

As long as the mortgage is paid, your house is safe. Priority bills like council tax up to date? Good. Can you afford to pay utility bills and buy food? All these things are higher priority than unsecured debts.

Give us a soa if you want more detail

https://lemonfool.co.uk/financecalculators/soa.php

An iVA may not be the answer but no they can't 'come after the house after the iva is finished'

C14re

https://forums.moneysavingexpert.com/discussion/comment/82155907#Comment_82155907

Thanks. Can you explain what MIA means please?

ManyWays

I think MIA may have been a typo for SMI, see https://www.gov.uk/support-for-mortgage-interest

An IVA when you have a lot of equity in your house and little spare income may be hard to get accepted.

 im left with £80 after dd bills and essential living costs
is that £80 after you pay the debts? If it is, can you say how much the debt minimum payments add up to? And are any of them loans that will end soon?

If you only have £80 with your son paying the mortgage and you paying nothing to your debts, that is totally unsustainable.

An SOA as @fatbelly suggested would let us be more helpful.