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A good starting point for DMP questions
By Melissa S
#30736
Hi Abs

As you have around 28k of equity I would agree that bankruptcy would not be the best solution for you as you would need to release this and this would more than likely mean selling your home.

I would suggest an IVA. You will not be asked to sell your home in an IVA. At the end of the term which is usually 5 years you would be asked to release the equity through remortgaging however, due to your poor credit rating it is very unlikely you would get a new mortgage and therefore your IVA will instead be extended for another 12 months to compensate your creditors.

After this time your creditors will no longer have any claim to your home and its equity.

Your HMRC debt will also be included in your IVA along with your other unsecured debts. I have attached an article that will help you below.

what happens to my house if I start an IVA
By Abs
#30777
Hi Melissa, how do I get an IVA? Do I need to contact my creditors?
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By Geraldine
#30779
Hi Abs

I agree with Melissa given your equity Bankruptcy would put your house at risk and so you should avoid that option. However starting an IVA is a good idea.

You cannot do this by contacting your creditors yourself. My advice is speak to James at Beat my Debt. He is great and will be able to talk the IVA option through with you and help you implement it. He can be contacted on their main number 0800 077 6180.

Good luck with it and please do not hesitate to ask further questions here if you need to :)
By Melissa S
#30782
Hi Abs
I agree with Geraldine, give James a call, he will be able to point you in the right direction as to which IVA company is reputable and guide you through the process, he helped me through my IVA.

There are no upfront fees in an IVA and your home will be protected.

Please keep us informed :)
By Abs
#30823
Thank you all for your help, I will get on with sorting out an IVA asap.
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By Geraldine
#30836
Hi there Abs

How are you getting on? Did you speak to James at Beat My Debt? Please let us know if you need any further help or advice :)
By Melissa S
#30841
Hi there Abs

How are you getting on? Are you talking to anyone about setting up an IVA. Please let us know if you have any questions we can help you with. It can seem a bit overwhelming to begin with and sometimes depending who you are speaking to the advice can be different which can be confusing so let us know if you need any clarification on things.