Author Topic: what direction to go in  (Read 906 times)


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what direction to go in
« on: Oct 29, 2011, 02:30:24 AM »
Hi James,would like your advice please. I have an IVA for debts totalling about 25k,started this in Feb 2011,no payments missed yet. I have a secured loan on the house again for about £25k. Our mortgage is approx £145k with the house worth roughly £175k. Our outgoings are getting to be more than our incomings and we seem to live on a week by week situation. Would love to keep the house mainly because we have a 5yr old son who is settled,but life is becoming such a drag just trying to get by,we need to try and move forward with the best solution possible.If we go bankrupt would we have to lose the house? I got made redundant in July 2010 from a well payed job which has caused many of the problems.I now have another job but on a much lower salary.Many thanks for any advise you can give us please James.

James Falla

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Re: what direction to go in
« Reply #1 on: Oct 31, 2011, 01:31:37 PM »
Hi there. Sorry for the slow response. I do not always post on this forum every day :)
If you wish you can decide to let your IVA fail and declare bankruptcy. From what you have said it is unlikely that you would automatically lose the house. If at the time you go bankrupt there is little or no equity in the propety it might be possible to buy back your title immediately thus eliminating any further risk to the property. If not then the property would have to be revalued in 2 years and 3 months time (during which time you continue to pay the mortgage and secured loan). At that time if there is less than £1000 equity the house will simply be given back to you. If there is more than £1000 a charge for the value of the equity will be taken against the property before it is given back to you. Only in cases where there is considerable equity would the property be forced sold.
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