IVA vs BR confused advice needed

startingover

Hi all

We'll I've spent the morning at the CAB and now more confused than ever!

I would really appreciate some advice of people in the know.

Here's my situation I owe nearly 40k in debts not including a charge of £7k on my property too.

If I move out of my house, give back my car on HP and go BR I will be left with about £300 surplus (this is post BR) now the CAB advisor thinks an IVA would be more suitable because of the large surplus.

I did explain that the only reason I would have a surplus is because my debts I had been paying (700 per month) had now been included in BR.

She said the although I could go to court and file for bankruptcy the OR could overturn the decision at anytime in the following 12 months as he could have an issue with my surplus. I tried to explain that I only had a surplus because of BR. Could they OR then overturn the BR and force me into an IVA?

Another question, can any mortgage shortfall and charging order be included in an IVA as I thought it didn't deal with secured creditors?

Thanks in advance.

tuhin23

if you went bankrupt the official receiver would expect you to pay an amount into the bankruptcy for up to three years. The house if in negetive equity could potentially be kept. The car on HP if not excessive and you could prove you need it for work may be allowed to keep.

They cannot force you into an IVA.

The benfit of doing an IVA is you are likely to save your house & keep your car, however the secured charge cannot be included and you will be allowed a monthly allowance to pay this while in an IVA. Mortgage and sec loan shortfalls can be included if you have sold your house and there is shortfall.