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How much do you owe in total to your creditors? How much equity do you have please?
I have 15 in personal debts which are being paid at a nominal rate as agreed with Step change so these are not proving to be a problem, its just this 40 k we are being asked for by the liquidation lawyers, we have about 80 k in equity.
Will they not accept a lesser amount or accept a charge on your property so when you eventually come to sell they can have the £40k? Do you accept you owe the £40k?
I have been told by a few IVA companies that they cannot force us to sell our house, worst case senario would be to apply to put a charge on it if and when we sell it in the future, i do feel that we were mis advised by our accountant about paying ourselves 2500 per month in dividends and only 400 in wages as to keep our tax down, we just went on his advise and we not aware we were doing anything wrong.
For an IVA then yes, they can not force you to sell your house. But 75% of those attending the IVA must vote to approve it. If they know you have £80k in equity and you are offering a small amount to creditors it may not be approved.
But with an IVA then your house is safe, although you may have to release some equity.
They may agree to just hold a charge over it on agreement that you either paid £ x monthly or they obtained funds when you sold.
But those are two options
1) IVA to reduce debts but risk having to release some equity
2) See if they will accept a charge over the property on payment of £ x per month or when you sell the house
As my wife and i have a poor credit rating now we have tried re-mortagging and all the banks are an absolute no no, our mortgage was a self cert 10 years ago so that does not help.
I see. Sadly then you can only see if they would accept a charge.
If they refuse then if you can not pay they can take you to Court. If they win then they could apply for a charge on the house and force a sale.
and if they wont accept a charge what then?
So the best option would be to either an IVA or a charge.
IVA - but you are left with the equity to try and release.
Creditors simply wont accept you having £80k equity and they, for example getting 30p in the £
Step Change may also be able to arrange a repayment plan but given the sums of £40k for a debt it may be too big for the creditor to accept.
If we could agree a, 300 ound per month payment just on this alone do you think this would be accepted
Have you spoken to an Insolvency Practioner yet?
Well - its a commercial decision for them.
I can not say whether it would be bearing in mind it would take over 11 years to pay off
All I can do is give you the legal situation as I see it sadly
We simply cannot afford to see and legal side unless its just for a meeting or two, its just all we could afford
Then you should set out your income and expenses and show them what you have.
Offer to allow them to put a charge to secure the debt on repayment of £300 a month and see what they say
Does this help
As it is now they have given us 28 days to respond, we have told them we are trying to find the finances knowing full well we have no way of getting them, stalling basically, what would you advise to do next, contact an IVA firm, or deal with them direct
I would contact an IVA firm first.
Unless you want to allow them for a charge.
If you want to allow the charge then speak to the creditor.
If you do not want to then speak to an Insolvency Practioner
Does this help you?
Me and my wife dont mind going for an IVA at all really we just dont want to loose our house
Yes, if you have an IVA you won't lose your house unless you break the IVA
Does that help you?
Sorry just one last question before i forget, do we have any case with our accountant as we were just taking his advise but being paid this way, both myself and my wife had no experience with limited companies and we only went ltd, as advised, to stop this exact thing happening!!
Yes you may have a claim against the accountant for breach of contract and/or negligence if he gave you bad advice.
But to bring a claim against him you have 3 years from the date of advice and you would certainly need a Solicitor given the value of the claim against them
Does that help?
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ok so thats a no no really, thanks for your advise lesson learnd for the future i suppose, its nice to know we prob wont loose our home even if we get a bad credit rating for 5 or 6 years, thanks.
Yes that is right, just make sure you keep to any IVA term
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