Decision time???

Flattery26

Hi all, have followed the forums for a while but only just joined.

Bankruptcy or IVA?

Bit of a complicated situation, but eager for opinions...
The time has come to make a decision, jointly with my fiance, including negative equity in a property which is rented out (£20-£30k), mortgage to rent deficit of £400, Personal unsecured debt of £70k and £2k in benefit arrears owed. All come about through prices dropping, redundancy, bad decisions, over spending and a bit of bad luck!

Having received advice on bankruptcy it makes sense, but with a few more hours at work I believe I can have a surplus income of £200 for an IVA.

I live in a nice rented house, in a nice area with my Fianc!e and our two beautiful kids 3 and 1. I really need a way out and a fresh start.
I have had arrangements in place with £50k of creditors for 2 1/2 years, which haven't been a problem, but the mortgage is due to go up £400 in may and I'm 1 month in arrears. The rent is £525 mortgage £925 plus insurance.
My finacees Unsec Debt has always been paid as Ive tried to keep her credit record intact. But she is on the mortgage and facing giving the house back would mean her being dragged in to it.

I have also been advised by the CCCs since I was made redundant.

Theres no real chance of making any reasonable kind of arragement with all creditors including the mortgage company that wouldnt leave us strugging for 20 years. Other than that I beleive our decision is IVA or B?

Any advice would be appreciated..

FoggyBrain_2

HI there . First of all might I suggest you pop over to https://www.iva.com where you will find a listing, with reviews, of a few IP companies. It would be wise to give a couple of them a ring to discuss your options. The advice is free and impartial.

On the face of it the problem with an IVA would be that you seem to be relying on overtime to be able to fund it. Remember that the IVA will run for 5 or 6 years -- can you guarantee the overtime for that time?

Flattery26

Thanks

the overtime is in a family business, so in theory not a problem long term.