IVA Versus Bankrupcy..

fermi

I think peachyprice was probably thinking more along these lines:

"Martin's_IVA_Guide wrote:

Unlike with bankruptcy, as long as you have enough income to make the monthly payments, you should be able to protect your house and other assets.

Yet while you won’t have to sell your home, you may have to give up a big proportion of your ‘equity’, the share of it you own. Creditors can ask you to remortgage and release up to 75% of your share. If you have no equity or are in ‘negative equity’ (that is, you owe more than the property is worth) at the start of the IVA, your creditors may demand that the home is re-valued in the fourth year. After that, you may have to give up a proportion of the equity you then have.

If you have an endowment policy linked to your mortgage you’re likely to be asked to cash it in and add the proceeds to the arrangement. Plus if you have any savings you’ll probably have to hand these over as well.

peachyprice

Yes Fermi, that's what I was thinking of, if you can't re-mortgage (cos your IVA has shot your credit rating) you might have to sell to release the equity.

sparrabeth

I can't find the post where I read it now, but I remember reading that if someone can't remortgage for whatever reason, the IVA is simply extended for a year. You might want to PM one of the CCCS counsellors who lurk around here with Martin's permission. I think one is called CCCS Matthew.

mother_hen_2

Blimey this house situation is really confusing.

dalip

empty_wallet wrote: »

Looks like my OH has been pushed towards BR over IVA today as we had a meeting with the IP,she said that even though i was BR my OH's creditors would want any surplus i had and not only the surplus on my agreed SOA with the OR but they would not allow me to claim some of the allowances the OR has let me. Also even though what my OH was offering to pay was 60% of the debt it would still not be enough, so IP advised my OH to go BR as she said you will have a much better life and even if an IPA is given its only for 3 years, whereas with an IVA you are expected to live like a pauper for 5 years, the IP even said the creditors are getting too greedy for their own good and that maybe if a lot more people went BR it may get the creditors to situp and think about the situation.

More or less what happened to me,6 mths down the line i am really glad i did not do the IVA. Good luck to you both.

mother_hen_2

Why are you glad you did the b.r. as opposed to IVA?

dalip

mainly because they would have taken both OH money and mine into consideration when deciding how much i was to pay. Bearing in mind OH debts were not enough to do IVA that would have mean't paying IVA on top of his debts , a lot less allowed in terms of living expenses ect ect. We would have failed withinn 12 mths. At the time i was so against bc because of the stigma attached to it, the shame,having name in paper ect ect, that i did everything to avoid bc. To the extent that i went to extreem measures to meet my min payments. I clutched at an IVA due to the hype they get,then after several wks the ip company decided bc was the only option and as i had stopped paying my creditors i had no choice. If at the begining they had reccomended bc i am not sure i would have done it then,i would have i think looked into a DMP. That said i was very nieve and never knew about this forum until after bc so perhaps if i had i would have done things differently or at least would have had more knowledge about the whole process. Who can say?. All i can say is my life and that of my family is back to living again instead of existing on cc and going from one mth to the nxt.
Sorry for the long reply but you did ask:D