IVA or BANKRUPTCY

whitey31

Ok well at the moment we only have 5000 of debts which are controlled by a DMP which is good, but unfortunately my partner has taken a wage loss and we have decided to let repossession happen on our house as its cheaper to rent and as our house is in negative equity and also has a secured loan for roughly 30000 on it so there will be a mortgage shortfall on it alot as the market has drop for roughly 15000 on my house, so at this point is a IVA better or bankruptcy?

I hope there is someone out there can advice me please

miss_spooky

Hi whitey31,

Welcome to the boards. Have you or are you going to speak to one of the free charities? CCCS, National debt line or the CAB? Only ask as if you do petition your own BR then the court will ask if you have sort advice.

Will you both be going BR/IVA - with BR the debts are done on a personal basis, so if one of you goes BR & you have joint debts, then the other will be responsible for the joint debt.

I don't know a lot about IVA's but as you have suggested that you are going to let your house go, then I don't see any reason to go with an IVA. IVa's are only ok if you wish to protect an asset such as your house.

Other will be along with more info, but I didn't want to read & run.

whitey31

thanks, i have just read into IVA's and you can not take secured loans or mortgages into it,so bankcrutcy it might have to be, i have not yet seeked advice but will do just reading as much info on here which has calmed me down a bit as was so terrified before.

Sunnylooloo

Hi Whitey

as Miss Spooky says, you really do need to speak to one the charity helplines.

I personally found both CAB and National Debthelpline a great help.

With CAB I actually went in to see the advisior with all my figures etc and it was so helful to go and sit down and talk through it all, and she then sent me an indepth letter showing me the pros and cons and give advice on what she thought I should do.

In the intertrim whilst I am still going through a messy expensive divorce, I spoke with the National Debthelpline and they helped me with the letters to write to my creditors to go onto reduced payment.

I was going to try for an IVA and got some advice but basically they said I would have more money left over each month that I realistically would and wouldn't budge on my SOA so I knew if I started it, it would fail and I would be back to square one. As I said each situation is different and it really depends on what your future plans are, if you career could be affected, etc etc

You will get some wonderful help and support from this site, but ultimately it is you decision about what what you want to go which is why it is so important you get good independent advice.

Take care

LL
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