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russ02
Junior Member
170 Posts |
 Posted - 23 March 2008 : 12:08:40
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i am in loads of debt, i earn a decent wage but have no equity in my home, i also have 2 very young children, will i lose my house and is banktrupcy for me, thanks
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 23 March 2008 : 12:15:27
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Hi russ02
Welcome to the forum
It is very difficult to offer advice as to the solution to debt with so little information, however if your house is in negative or zero equity then ( provided that you can maintain the mortgage payments) it is likely that you would not loose your house.
In this case you would need to find a "third party" ( friend / relative) to purchase the Beneficial Interest in your property for an agreed sum with the official receiver. If there is no equity then this is likely to be 1pound PLUS legal costs.
You also need to consider if there are other solutions to debt that may be possible.
What level of debt are you in and what is your monthly disposable income ( before debts are paid)
look forward to advising further
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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melanie_giles
Senior Member
1191 Posts |
Posted - 23 March 2008 : 20:15:57
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The main test I use in advising people of the options available to them is to find out how committed they are to repaying their debts.
If you have disposable income, after taking account of all of your family income and expenditure - and making allowances for contingencies, you will have three options - carry on paying reduced amounts, enter into an IVA or declare yourself bankrupt.
Only you can decide which one of those routes represents the best way forward, and in considering the options you should take care to consider the needs of your family over the next few years. if creditor repayment is not a high priority, then bankruptcy proceedings may well seem the most attractive option. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 24 March 2008 : 08:52:23
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Hi Russ,
As Melanie has said it is very much a question of affordability, so after your income and expenditure has been calculated what is available for your creditors?
times this amount by sixty months and see what the total is if this is well below 40% of your total debt then the likelihood of sustaining an IVA is slim.
If it comes to 40% or more then an IVA is an option, and as Melanie says it is then a question of the importance of paying something to your creditors.
May I suggest you contact Melanie via her website link and discuss your options with her, you will find her and her team very helpful.
All the best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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AlanO
Junior Member
United Kingdom
259 Posts |
Posted - 24 March 2008 : 11:07:27
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As the experts mention a personal review is required to see what options you have.
Then you can decide what is best for you and your family. However if there is little/no equity then as Paul said then usually there would not be an impact on your home.
The key is paying your priority debts, mortgage, council tax utilities and ensuring the family is fed and watered. After that the debts can usually be dealt with
All the best alan
www.debtdr.co.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 24 March 2008 : 11:30:38
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I do not agree with the 40% ruling quoted by Julian above. Under the terms of the new IVA protocol introduced from 1 February 2008, creditors are not supposed to use hurdle rates, and HSBC Bank plc are the only ones operating a 40% barrier.
I am putting forward IVAs for as little as 15p in the £ now if they are appropriate, and in the client's and creditors best interests. I also have a lot of lower paying clients in my portfolio who are happily sustaining their arrangements - because it is important for them to see their debts being repaid. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 24 March 2008 : 13:55:30
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Hi Russ,
As Melanie says the 40% is not set in stone as per the terms of the new protocol, however HSBC are still sticking to their 40% limit and others are tending to refuse IVA's altogether.
It will all depend on the exposure to your creditors and whether any one creditor makes up a large percentage of your debts and who this creditor is.
You will find independent IVA or Insolvency Practitioners have much more success in the lower percentage IVA's and as Melanie says she has a great deal of success in this area.
Try to keep away from the large IVA houses, and stick to companies like Melanie's you will have a much more personalized service taking your need and plans for the future into concern
All the Best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 24 March 2008 : 15:42:42
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Julian
Can you tell me in your experience which creditors are refusing IVAs altogether, as I have no current experience of this and I put a lot of IVA proposals forward into the marketplace to a variety of creditors including all of the main lenders.
Would be useful for me to know which ones to avoid! |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 24 March 2008 : 16:59:27
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Hi Melanie,
Lloyds have point blank refused two proposals in the last ten days, HSBC voted against one for 35p in the £1.
I have had seen some issues with Royal Bank of Scotland to do with a Tesco loan, but this was a fairly complicated proposal.
It appears you have, as I said before, some excellent relationships with the lenders and their representatives so would be interested to hear your experiences of the lower IVA percentage approvals and the creditors trends in relation to these
All the best
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 24 March 2008 : 17:23:49
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Julian
If Lloyds have more than 75% of the vote they will reject - and that is well known in the industry. Similarly so is HSBC's 40% rule, although I have personally seen that relaxed in a number of circumstances.
I have to say I rarely encounter difficulties with creditor representatives (thankfully!), but I guess this is all about keeping one's nose to the ground and knowing what is and is not going to be acceptable, and then finding a way to make the not acceptable, acceptable!
Given the advent of the IVA protocol, creditors will find it less and less acceptable to reject IVA proposals which are presented in line with the protocol, but I do accept that some IPs may have better track records than others. |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
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Topic |
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will i lose my house and is banktrupcy for me?
