When to use Yellow Apricot - IVAs |
YELLOW APRICOT HELPING AVOID IVAs
An Individual Voluntary Arrangement (IVA) is a legally binding contract supervised by an Insolvency Practitioner whereby you agree to pay a certain amount of money each month towards your debts to your creditors in return for them not persuing you for Bankruptcy. Provided the creditors agree, the arrangement normally lasts up to 5 years, does not create as much publicity as Bankruptcy and after the 5 years the remaining debt is normally written off. However, if you do not keep to the arrangement, you are likely to be made Bankrupt.
If you were to go Bankrupt instead, you would be discharged after 3 years and be able to repair your credit rating without having the hassle of supervision from an Insolvency Practitioner over a period of 5 years.
In any event, your credit rating is affected and the outlook is grim. But all these problems can be avoided by selling your property through Yellow Apricot.
Example:
Mr Graphite made a lot of money during the last 5 years from selling a new gadget. He had bought a house in Chiswick for £500000, remortgaged it to £450000 and its current value is £650000. Unfortunately, his business has now nosedived and his sales have collapsed. He is only making £20000 per annum and with his mortgage repayments alone at £27000 per annum, he has been relying on transferring balances between credit cards and taking out personal loans to try to survive. He now owes £220000 on loans and credit cards and he has just received a letter from his lender saying that as he is more than 3 months in arrears with his mortgage, they are going to apply for repossession.
He has made a few telephone calls and a local Insolvency Practitioner has advised him that his best course of action would be to enter into an Individual Voluntary Arrangement with his creditors. Otherwise his creditors will make him Bankrupt.
He contacts Yellow Apricot Auctions who instead advise him to sell his property. He sells his property for £640000 and after paying off £460000 as his mortgage and fees, he has £180000 left over. With cash in the bank, he is in a strong position to negotiate settlement with his creditors. His creditors accept a total of £160000 in full and final settlement of the amount owed to them.
He now has £20000 in the bank and a provable income of £27000 per annum. He puts down £15000 as a deposit on a flat in Luton advertised in a Yellow Apricot Auction Catalogue and borrows £85000 from a new lender. With repayments of £500 per month, he can easily afford the mortgage and his other commitments and he can get to London for work by train in under an hour.
By selling his house through Yellow Apricot, Mr Graphite has avoided a costly IVA, Bankruptcy and ruining his credit rating altogether. He has paid off all his unsecured credit commitments, still owns a property and on his £27000 per annum income, he can live comfortably. In due course he can pick up the pieces and move back to London
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