What made you choose bankruptcy over an IVA?

mummybiz5

So many questions today - sorry - debt is taking over my life and I hate the DMP stretching 10 years into the future. Anyone want to share why they chose Bankruptcy rather than IVA -if you definately weren't bothered about keeping your house would you chose bankruptcy?

lisa.89

Hi, we are in an IVA (soon to fail)as wages going down etc etc.. long story..... from what i have been told, you stand a better chance of keeping house, cars..in IVA. BR stays on credit file for longer. we are now ready to give it all up so have nothing to lose.. need a fresh start. They need to see you can afford to pay into iva - not everyone can.
x

mummybiz5

Have had a long look at IVAs today and don't think it will be the route for us - we are on a nram sir and know the mortgage will increase so don't think there will be enough leeway in an IVA - we hate the house we are living in - it needs so much work doing to it and I have never lived in a fancy house so my expectations are very low. My kids need new beds we have no carpet on the upstairs floors as we can't afford to replace the awful ones that were there - house needs rewiring
(our fuse box has wires not circuit breakers !!) Ironically before this house we rented - DH bought this due to pressure from his parents who didn't like us renting - needless to say they won't like the house being repossessed and us going bankrupt either but I can live with that !

Maizy

Hi Mummy

IVA wasn't for us as our main debts were the negative equity and the fact we could not afford to maintain the repair work in the house. We did have personal debt also (under 30K) but were told for whatever reason BR was the way forward. Its hard to get your head around, very hard indeed and lots of us need that emotional support.

We spend so much time worrying what family, friends and neighbours will think, we prolong the agony so to speak, that was our experience anyhow. Now we are coming through the first year, we have had to toughen up a lot and face the music. We have had immense support and empathy as we have had to come clean with close family members and some friends, its too much hassle hiding things from some. If it wasn't for the fear of what others would think I'm pretty sure we would have done this a lot sooner. My OH regrets the time he spend worrying over what others thought, he was too proud to even talk about BR. We should have put ourselves first from the start as people only want whats best for us in the long run.

Now we realise how many people are racked up with credit card debt and huge mortgages, even found myself being a support to someone after BR, I was surprised to learn of people I know who are in serious trouble. It feels nice to be debt free and we could even be a tiny bit proud of doing this, after all it isn't easy by any means. If you seek advice from the charities they will go through every option available to you both.

After being on a DMP for years, we decided we wanted out of the debt and struggles and instead of putting effort into juggling finances, we now put it in moving forward the best we can.

lisa.89

Wish we were as brave as you Maizy - we have told people we are moving out soon but that is as far as it goes - really could not face telling all. We are always tight with money coz of IVA anyway ....x

lisa.89

mummybiz5 wrote: »

Have had a long look at IVAs today and don't think it will be the route for us - we are on a nram sir and know the mortgage will increase so don't think there will be enough leeway in an IVA - we hate the house we are living in - it needs so much work doing to it and I have never lived in a fancy house so my expectations are very low. My kids need new beds we have no carpet on the upstairs floors as we can't afford to replace the awful ones that were there - house needs rewiring
(our fuse box has wires not circuit breakers !!) Ironically before this house we rented - DH bought this due to pressure from his parents who didn't like us renting - needless to say they won't like the house being repossessed and us going bankrupt either but I can live with that !

Yep one of ourt mortgages is NRAM sir - we know the rate will rocket back up at some point!! We are fed up with house too, needs things doing and sick of looking at them! Just want a fresh start x

Maizy

Hi Lisa/Mummy

There is no way we could tell all, simply a handful who are really close to us. We put BR off for fear of others knowing the house would get repo'd or we went BR, we were adament nobody could find out. We made ourselves suffer unnecessarily. It was nice to get their help in the end with moving/emotional support or simply some understanding etc, after all things do change, money is tighter, people know there is something wrong or different.

Its very obvious our house has been repossessed, people are not naive, and it doesn't take much to find out. We don't care anymore what locals think, if they are friends they wouldn't judge anyhow and most people don't. If they judge or have a negative opinion then I could do without them anyhow.

I had to tell my manager as it was affecting my work, one of the problems we had was childcare, guilt over me working full time and in the end the whole mess just got to me. I'm glad I did, my manger was very understanding and things will work out in the future, no doubts there. Money problems can create all sorts of other issues that wouldnt be there otherwise.

Each situation is different, some don't tell anyone, others are quite open, we are somewhere in between but in the end, we are past caring and our family and future comes first. Its not a crime, its a legal way to climb out of a pit that otherwise would be impossible to solve without years of possible misery and stress. We decided we were done with that and it was time to move on, no regrets whatsoever. I can remember feeling the pre-BR strains very well and understand totally what you guys may be going through. x

I wish you and Mummy much luck with your journeys.