Bankruptcy or IVA??

ej_blondie

Hi,
I think I need to tell you my story from the beginning so you can see how I have got into such a mess.
In 2006 I bought a house with my ex partner. After living together for 5 months (and being together for 5 years) we broke up and I left. After having the house in joint names but not actually living there myself, although still paying half of the mortgage, i was informed that the house was being repossessed as he hadn't been paying the mortgage. The house was repossessed in 2010 and as he hadn't paid for over 7 months, my credit rating had already been affected and therefore I couldn't even get a loan to repay the missed payments and buy him out. The house was subsequently sold for £25,000 less than what we paid for it and with interest and charges on top, the final deficit was £39,000.
At this point I decided to try and save up a lump sum to pay the mortgage company off, at a lesser amount, whilst still attempting to pay SOME kind of token payment to them each month. I was doing this whilst also paying off a wedding loan (with the ex partner who got the house repossessed - which he contributed nothing to), 2 credit cards (which I sometimes had to rely on to pay half of the mortgage, even though I wasn't living at the house - which I later found out he hadn't been contributing to anyway!!).
After Christmas I then found out that my dad's terminal illness had progressed and I was required to give 3 months notice at my job as a teacher in order to move back and be with my family. He subsequently died 3 weeks ago and we are now trying to adjust to not having him around. I was earning a£32,000 salary in my previous job, which was helping me to cope with my debts and keep on top of things. I applied for other jobs during my period of notice, yet was unsuccessful, and have since had to become a supply teacher which is only providing me with 1-2 days of work a week. In between work I am claiming Job Seekers Allowance and claiming help towards my rent and council tax yet I have now had to stop any payments to my creditors. I have kept them informed of my circumstances yet I am now at a crossroads.
I have contacted the CCCS and they have informed me until my circumstances change, ie i get a job, I cant become bankrupt or enter into an IVA - for obvious reasons, one being a fluctuating income. As there are no teaching jobs around at the moment I am now having to apply for other work ie admin, sales, marketing, which pay less than half of what I am used to. Yet my question is, how much do I need to earn in order to enter into an IVA and how much is 'not enough' and to therefore apply for bankruptcy.
You must understand that I am not trying to avoid paying my debts, but I am keen to get back into work and get this sorted one way or another as the longer it hangs over my head, the longer it is going to take to get myself back on the property ladder and start again.
Alongside all of this, it has become apparent that my ex has not even been contacted about any of this because I am in touch with the mortgage company so they see no need to involve him, even though it is a joint debt!!! Makes me so angry!!! :mad:

Please help.

EJ

dojoman

Hi and welcome to the forum, very sorry to hear about your dad, If I was you I would contact one of the other debt charities, links below, There is no reason that you cannot go BR just because you do not have a job.



http://www.nationaldebtline.co.uk/


http://www.citizensadvice.org.uk/

tigerfeet2006

I agree with Dojo, there is no problem being on benefits and going BR unless your outgoings are hugely greater than your incomings.

If you do go BR then your Ex will be solely responsible for the whole of the joint debt.

ej_blondie

Thank you.......I do want to work though, but the reason I haven't sorted this out sooner is because the CCCS told me I couldn't do either solution until my circumstances had stablised. I'm confused now, hahaha. xx

tigerfeet2006

By the sounds of it it will be along while before they stabilise so I would get on with it now. The sooner you do the sooner you can get on and live your life. Have a chat with National Debtline, linked to in Dojo's post, they are open till 9pm tonight. Get a second opinion, take all the advice you can.

ej_blondie

Thank you, I have now spoken to the National Debt Line and they have informed me to begin the file for bankruptcy as there is no reason to wait. I have downloaded the forms and now intend to use the time I have whilst I'm in between work and get this mess sorted once and for all. Also, when ! start work, they said I can pay into the Bankruptcy for a max of 3 years if my circumstances improve, which means I can take some responsibility for them too. Thank you everyone. Feel so much happier. :-) :-) :-) xx