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Time to Turn
Starting Member
3 Posts |
 Posted - 18 May 2010 : 09:07:28
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Hi all,
I am new to the forum, but me and my partner are so confused with which way to turn. We have taken advice is respect of an IVA, and have been told that because our housing costs are so high, creditors may ask that we look at renting.
Our costs are as follows:
Mortgage £1270pm (interest only)
Secured Loan £700pm
We are able to afford the above, and have recently moved to I/O to offer a better dividend for the IVA pot if accepted.
We owe approx: £125k in unsecured debt, and in an IVA can look at offering a dividend of 14p in the £ to our creditors.
We are in negative equity approx: £83k
We would like to know if going BR would be a better option?
If going BR would the OR insist on going into rented accommodation?
If we went BR, and moved into rented, could we bring the secured shortfall of £80k into the bankruptcy?
Many thanks for your help. |
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Daniel Griffiths
Junior Member
United Kingdom
268 Posts |
Posted - 18 May 2010 : 10:49:25
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| I think with 83k negaitive equity someone needs to advise you to go into rented accomodation, also in that position I would wonder as to if an IVA would offer any benefit to you at all although creditors are only seeing 14p in the pound anyway is it worth paying around £7000 in fees to an IP to deliver that anyway. To afford such a high mortgage and also fund an IVA I would imagine there is a decent income coming in each month therefore if you elect bankruptcy and rent you would have an IPA payment much higher than in the IVA, this needs to weighed up though against such a large negative equity debt should you keep the property. Normally ORs look at mortgage payment about 45% to 50% of gross income but this is not set in Stone |
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Time to Turn
Starting Member
3 Posts |
Posted - 18 May 2010 : 14:22:11
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| Thanks Daniel for your advice. Our mortgage is 39% of our income. That said the OR may still see £1270 + the secured element being that litlle bit too rich. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 May 2010 : 19:11:50
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Hi time to turn
from what you have typed i would say that BR may be more appropriate
do not rush to leave your house or jump into declaring BR
speak to one of the experts just to make certain that you have planned every eventuality too many people post after petitioning for BR and then try to deal with the issues in retrospect too late when you enter that court and the Judge says the words.
just for peace of mind talk to one of the experts to the left, I used Paul and his team at Reviva and highly recomend them.
regards Richard |
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Time to Turn
Starting Member
3 Posts |
Posted - 18 May 2010 : 19:18:49
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Thanks Richard.
I will speak with one of the professionals later this week. i thinks it's clear, are position in continuing with the mortgage / second charge is now untenable.
Thanks again. |
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Which way to GO?
