I don't know what to do!

NSNO

Hello everyone

This is my first time here and can I say it's good to be amongst people with a wealth of experience and advice.

This is a little long winded so please bare with me.

The situation is this, my wife and I have accumulated a lot of personal debt which includes the usual credit cards and loans and also a secured loan and car finance agreement. These amount to £50,000 with an equal split between secured and unsecured. The mortgage is with Platform.

We recently opted to go for an IVA, which was initially rejected by the creditors and now we have a revised plan which is due to go before the creditors in a couple of weeks.

We've decided that we're going to move away from the area to make a new start, mainly due to personal issues, however we're only going to have one wage coming in and we will be going into a rented property. The one wage could cover the IVA (if agreed) and the rent, however, it is impossible to pay the rent and the mortgage and the secured loan and car.

We have dsicussed renting our house out but that wouldn't pay the mortgage, we've looked at selling the house quickly i.e. reduced price but that wouldn't cover the secured loan. Now we are looking at Voluntary surrender of the house and car.

Is surrendering the property and car the best way to go?
What happens to the secured loan if we surrender the property?
If Platform sell the house and it doesn't cover the secured loan what happens then? Does the address still have a secured debt against it?
Does the secured loan then become a personal loan?
Is bankruptcy the only way with regards the mortgage and secured loan?

There are so many questions and ifs and buts that I can't seem to make sense of anything!!

We could really do with some advice and guidence please.

Sorry it's long winded I couldn't really condense it any more


NSNO (Nil Satis Nisi Optimum)

Runnybabbit

Hi, I'm just giving you a bump so that the experts come along to help you. Good luck and hope everything goes well for you.

CLAPTON

Frankly, you should not enter into an IVA in your situation.
Have you consulted with Payplan/CCCS and taken advice.

IVAs only make sense there is a regular 'spare' income stream and all the secured debts are being taken care of.

So consult as above and if you wish post up a SOA here... without the full financial details its impossible to give proper advice.

NSNO

One thing that we are guilty of and that is not seeking any advice, we've tried to do it all on our own. Which quite frankly is foolish!!!

We will be speaking to someone.

NSNO (Nil Satis Nisi Optimum)

immoral_angeluk

First of all the IVA clearly isn't a good idea, and you should look at getting independant advice from one of the debt charities ASAP. These are the Citizens Advice Bureau, Payplan or the CCCS.
Surrendering your house and you car will not be the end of the problem. You will still be liable for any shortfall if the house and car sell for less than is owed. If you were considering this seriously I would recommend looking at selling them privately instead and then using the money to pay off the credit.
Moving house at the moment is only going to compound the problem, where will you find the money for moving house, rent deposit, rent in advance?

Horace

Have you thought of renting out rooms in your house? Also if you post your statement of affairs (SOA) people may be able to give advice as to where you can cut down in other areas.