Questions about Individual Voluntary Arrangements and Insolvency.

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ByOn_Edge
#148472 Hi,

Along wait in anticipation and letter recieved today from my potential IP.

I am in shared ownership property (50%) equity approx 35,000. Debt 42,000* approx. IP suggests if proposal submitted there would be no incentive for creditors to vote in favour of IVA.

* Creditors: Barclaycard; Lloyds TSB; Alliance & Leicester; Nat West; Egg; Student Loan Company.

Very worried now as IP suggesting that total contributions in bankrutptcy would be substantially higher than that in IVA, and therefore producing a better return to creditors.

IP suggesting that if IVA figures (£326/25p over 60 months) put to creditors there would be no incentive for them to vote in favour of the IVA agreement.

Under lease condtions, i am unable to re-mortgage on shared ownership l(as other 50% belongs to a housing Association).

Based on the above, IP believes does not have a workable proposal.

I am aware on this forum that shared ownership is not a common issue/ question. For those of you who are familiar with this type of query i would really really appreciate any advise, suggestion etc. What could i possibly suggest to my IP?

I thought IVA was introduced to protect home owners. I desperately want to hold onto my home and at the same time want to pay back my creditors the best possible return without losing my home.

I have thought about the extra year in IVA but that may not be enough?


For those who respond - THANNNNNNNNNNK You!
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ByMrs Plastic
#148504 Hi On Edge
I can't advise but hope you get sorted.

Margaret
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ByDab
#148578 Have you actually spoken to the Housing Association to confirm that they would not allow a remortgage? Worth checking, I know it has been done before on shared ownership properties - the HA didn't have a problem as long as rent payments were up to date.
User avatar
ByOn_Edge
#148689
Dab wrote:Have you actually spoken to the Housing Association to confirm that they would not allow a remortgage? Worth checking, I know it has been done before on shared ownership properties - the HA didn't have a problem as long as rent payments were up to date.


Hi Dab,

I have never spoken to the Housing Association about this before and they do not have any reason to believe i am in debt trouble. I have to say they are a very harsh beings and i feel i have to be cautious of what i say to them/or how i put it. when i first moved in (as new tenant) and my boiler broke down because of a technical fault, the person on the other end of the phone at H.A was shouting & screaming blue murder, like i was some sort of a criminal.

However, good news i have not missed any rent payments (apart from 1 recently) in the past 5 years.

Can you give me an idea as to what i should say to them to begin with? :roll:

Thanks alot.
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ByDab
#148705 If you're worried about their reaction, I'd just call anonymously and ask if they have a general policy regarding allowing remortgages for debt consolidation purposes. Or, since you'd be anonymous, you could specifically ask about remortgaging to release equity into an IVA if you wanted to be doubly sure.
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ByOn_Edge
#148718
Dab wrote:If you're worried about their reaction, I'd just call anonymously and ask if they have a general policy regarding allowing remortgages for debt consolidation purposes. Or, since you'd be anonymous, you could specifically ask about remortgaging to release equity into an IVA if you wanted to be doubly sure.


I was unable to get through to my H.A so i phoned another H.A which deals with Shared Ownership. Remortgaing in general can take place providing your mortgage lender allow this to happen. In the first instance the property has to be valued, then the H.A in question has to be approached and they usually agree equity release if it is for home improvements (up to 95%), and in some cases for debt consolidation (90%) and this has to be put in writing to them justifying a good reason etc.

My lender is Abbey and i have already asked them and they do not remortgage on Shared Ownership, i suppose i would have to change mortgage lender.

I will have to ring back my H.A tomorrow and talk to the relevant person dircetly.

Thanks alot Dab.
User avatar
ByDab
#148728 No probs :wink:

There are definitely mortgage companies about out there who will remortgage shared ownership properties, main thing is making sure the HA doesn't object. Good luck with ringing them tomorrow
User avatar
ByOn_Edge
#148819
Dab wrote:No probs :wink:

There are definitely mortgage companies about out there who will remortgage shared ownership properties, main thing is making sure the HA doesn't object. Good luck with ringing them tomorrow


Dab

I pray to GOD they do not reject.

Thanks alot.
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ByOn_Edge
#148825 Reborn - if you mean Chelsea Building Society? If so, in relation to my problem, can you tell me more about them?
:roll:
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