Hi

Firstly, I’m really sorry to hear you are struggling so much and I hope I can offer you some practical advice as to what you need to do next.

The main reason that you’ll find it difficult to get a clear understanding of how much equity you would stand to lose if you entered an IVA is due in the main to the fact that most debt advisers don’t understand the mechanism that is employed by the Insolvency Practitioners.

This is an area we specialise in, and in reality the chances are that you would not actually be required to release any equity from your home in an IVA based on the fact that at present mortgage lenders are only allowing a maximum loan to value of 50% for people in an IVA. Instead it is likely that you would be required to extend your IVA payments by 12 months in lieu of any equity that can’t be released.

I would urge you to take a moment and read this article on exactly this subject.

http://www.my-iva-adviser.co.uk/iva-will-the-equity-in-my-house-affect-my-iva

Unfortunately you did not mention how much debt you have built up so far, so its difficult to establish whether or not an IVA many be a suitable option for you sometime in the future, once you have managed to stabilize your situation and secure a consistent income, but that should be considered when your situation improves..

In the meantime I would suggest that you notify Payplan or C.C.C.S. of your true income and allow them to establish whether or not it can be used towards your payments.

I can’t imagine they’ll have any problem with it, so long as it is regularly the same amount each month and is not likely to fluctuate wildly.

Good luck in any event and I really hope you find some work soon.Tricky situation. I don’t know about Payplan but what I do know is that you really could do with some free debt advice or counselling. Try a company I did called DebtLine Direct [www.debtlinedirect.com], I gave them a buzz and they really helped me make sense of stuff.
Good luck
SarahI can honestly help you with your debt problems, I am NOT recommending an IVA(Individual Voluntary Arrangement), neither am I suggesting Debt Management – although there’s nothing wrong with reducing YOUR outgoing debts by up to 95%. The truth is, in most cases the so called “legal document” or contract that YOU signed when taking out the loan or credit card does not comply with UK law. Consequently the contract is unenforceable or invalid – “So for that reason YOU could write off the debt completely, and NEVER have to pay back a single penny”. You can call me on UK 08448842913 with no obligation for more information if you wish.

Kind Regards Pearse Donnelly

 

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