getting a IVA with a mortgage
Hi.
A lady at work has 45k debts and due to a split from her partner is living in a one bedroom flat with two young kids in her room and her aupair in the living room. the flat is a council flat which her dad gave his savings to buy for her to help her out.
She recently applied for a iva as her payout to all her debts are crippling her each month. she was refused a iva as she has a mortgage. i don't believe she is even concerned about getting a percentage dropped instead she just wants to lower the amount she pays each month to something managable.
does anyone else have a better idea as to any other options that would be better. she said she cant sell the home for another two years due to council restrictions.
thanks for any advice
A lady at work has 45k debts and due to a split from her partner is living in a one bedroom flat with two young kids in her room and her aupair in the living room. the flat is a council flat which her dad gave his savings to buy for her to help her out.
She recently applied for a iva as her payout to all her debts are crippling her each month. she was refused a iva as she has a mortgage. i don't believe she is even concerned about getting a percentage dropped instead she just wants to lower the amount she pays each month to something managable.
does anyone else have a better idea as to any other options that would be better. she said she cant sell the home for another two years due to council restrictions.
thanks for any advice
0
Comments
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Her IVA will NOT have been refused 'because she has a mortgage' infact most people choose an IVA to protect their property, and therefore have a mortgage.
Also, how does she have a mortgage if her Dad bought the council flat for her to then live in?
There seems to be missing information here.
But in answer to your question, a debt management plan would be an option worth considering.0 -
DMP would be the way to go, or at year 5 or 6 of an IVA they will make her remortgage and pull some equity out anyway.
Has she ACTUALLY went to a debt charity, filled out all the forms, had a creditors meeting and the IVA was refused ? If so they would partition she bankrupt....or has the IP just said they cant help?
Best get her to post up all debts, interest rates, minimum repayments and if she is still using the cards to pay for living expenses. Also get her to do the PPI reclaim thing, use any money refunded to clear some of the debt down, down value the car, sell everything, change lifestyle and pay as much off the debt as possible. If she still has a good credit history, any chance of 0% balance transfer cards to help?0 -
From personal experience the main reason we went for an IVA was because it protected our house as mortgage and car wasn't included in IVA.
So as others have said I'd double check were she got her info.0
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