Please Help - Should I go bankrupt or get a IVA?

mshaw09

Last year my husband had to close his business and went bankrupt. Our house was handed over to his trustee and was sold later. There was not any equity and there was a shortfall on the sale. We took out an unsecured loan and this was tied to the house… I am not sure this means I have to pay any short fall in the sale of the house… I was wonder if this is true??

Although if it is that we do indeed have to pay I would like advice on how to deal with this? As the building society have been sending letters to me asking me to pay the shortfall. I told them I couldn’t afford to pay it and they said I would have to fill in a budget household expenditure form and we could come to some agreement on how much I could afford monthly. I thought I had sent one but they said they never received it.

The building society had handed the case over to a credit company and they are now dealing with it. They haven’t contacted me and I don’t know what is going on.

In the meantime I am in the process of sorting out advice from Citizens Advice and having called in for an appointment they put me in touch with a company called Payplan who could help me sort it out. I had agreed to try and start up an IVA and have sent the relevant information, letters etc to person in charge of my case there.

I have now decided to seek further advice as to whether to go ahead with the IVA or to apply for bankruptcy. I called a solicitor that suggested I should turn my company in to a limited company and go bankrupted. I don’t know where to start about going limited or even if I can? I am self-employed and my husband has now got a new job.


Could you please advise me what you think may be the best thing to do?

Should I take an IVA?

Should I go bankrupt and turn my company in to a limited one? My business is client based Beauty Salon, which is a sole trader and I work alone.

Or do you think I should get solicitor advice on whether to take action on the company that is trying to collect money that I should not have to pay?