What if you have equity in your property?

Introduction

Do not be discouraged from calling if you do have equity in your property. The risk of losing ones home is a constant worry and can usually be avoided. Our network of professionals will negotiate a commercially viable alternative to keep you in control of your property.

Recent Example - People with equity in their properties

Mr and Mrs Slade, a young married couple who worked as estate agents had a joint household income of £36,500. They both enjoyed all of the benefits of a good income. In 1996 they purchased a property in a newly built suburban development in London. Their joint income easily covered mortgage and living expenses. Over the course of the next few years both incurred personal loans and credit card liabilities, which had grown to £32,000. As time passed both found it difficult to meet the minimum payments of £1200 per month. The interest steadily mounted up and the annoying letters and telephone calls from creditors began.

The couple were under the threat of bankruptcy, which would have been a disaster considering their property had £15,000 worth of equity in it. (£100,000, present market value less £85,000 outstanding mortgage.) This would have meant that if one of the creditors were to petition for their bankruptcy the house would have been sold to pay back debts.

We advised the couple enter into a tailor made three year IVA (Individual Voluntary Arrangement) offering 80 pence in the pound. This offer was based on what the couple could comfortably afford and was accepted.

The advantages to the couple were as follows:

1. They reduced their total debt
2. All interest charges were stopped
3. Their monthly payments were reduced by £900.00
4. They were able to keep their house

The return for creditors in an arrangement such as this is far more beneficial than would be achieved in a bankruptcy procedure.

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Sole Traders / Partnerships Debt Advice Menu

• Sole Traders and Partnerships enquiry form
• What is an IVA?
• Individual & Personal Insolvency
• Individual Insolvency Register
• The IVA procedure
• IVAs - Facts and how they work
• IVAs - Frequently asked questions
• IVAs - Estimated completion timescale
• IVAs - Documentation required
• Download IVA questionnaire form
• What about my banking options?
• What do we do?
• Reasons for business failure
• Exactly what happens next...
• Why a loan won't help
• What is bankruptcy?
• How to deal with 'bad cheques'
• What if you have equity in your property?
• Beware of informal debt consolidation
• Non-dischargeable debts
• How do you qualify for an IVA?
• Five point debt action plan
• Debts under £5000?
• Trust Deeds (Scotland only)
• Protected Trust Deeds (Scotland only)
• Bailiff guide - know your rights
• The world of credit repair - main menu

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IVA Advice Menu

• IVA (Individual Voluntary Arrangement) Overview
• The IVA procedure
• What is an IVA?
• IVA Enquiry Form
• How to start an IVA
• Who can an IVA help?
• IVA's - Facts & how they work
• Benefits and Advantages of an IVA
• Who can an IVA help?
• IVA - Help and information
• How an IVA works
• IVA's - Frequently asked questions
• IVA - Estimated timescale
• The IVA approval process
• The IVA criteria
• Bankruptcy or IVA
• IVA - What are the costs involved?
• IVA - The documentation required
• IVA - Download forms
• Sample IVA proposals for PAYE worker
• IVA - Guide to creditors Fees
• IVA - Standard Terms & Conditions
• Individual Insolvency Register