Bankruptcy v IVA advice? £65k in debt!

moneysavinmonkey

where is it that you live that it is the same to buy as to rent..

don't forget as well -s renting from the bank (buying!) has extra hidden costs e.g. repairs, legal costs, moving costs, furnishings, service charges, council tax etc. and also don't forget about mortgage and buildings insurance which all adds up.

if you don't have a deposit then you aren't protected at all if the market stagnates or falls even slightly...

also have you noticed interest rates are going up...

hypno06

Hi again, the reason that you may not have been made aware of DMPs is because they do not provide a nice fat fee for their advisors!

CCCS, Payplan, National Debtline and the CAB can give you options that others may choose not to. Have a look at their websites or give them a call just to see what they say (be careful though, some less scrupulous companies have very similar names) - the ones mentioned here are charitable organisations so will advise what is best for you, not what is best for their commission account.

Believe it or not I was in a very similar situation to you re house renovations etc. That is where my debt comes from (see my signature, it was fairly huge too). I looked at all the options, spoke to loads of people and then did things MY way. The way that is right for me is not the way that is right for others, but I was incredibly grateful for all the pointers and advice, and continue to get that help and advice from people who are in similar situations, as they are things I may not have considered or been aware of otherwise.

We are all posting on this thread because we do want to help you!

misspoppy

Hi I did post earlier but its gone so here goes.

I think it would be a good idea for you to seriously concider Bankruptcy, rent for a bit and spend time together recovering from your reccent ordeal. The reason why renting seems a good idea at the mo is because you have no responsibilty for the property, you just have to live there and pay the rent. When you own somewhere you want to make it look nice, repair things etc.

If you take the IVA route you could end up paying loads of money to the creditors for them to demand you sell or remortgage in 4 years to pay the balance off from the equity in your property assuming you dont end up in negative equity.

If you rent you can save up a deposite and maybe get a nicer place. Personally I think you have tried to be fair to your creditors and if things are so bad that IVA's and BR are being advised then you wont be getting a good mortgage rate right now either especially with no deposit this might change in a year or so.

Take care and take some advice from national debt help line or CCCS.

Bestthingsinlifearefree

Hi Melf,

As you say you got into problems last time when you bought a house.

So what do you want to do now? Buy a house.

You still have not said where you live in the Uk that is cheaper than renting?

Why not rent for 12 months and then review the situation?

hypno06

Forgot to say, we too sold the house from hell but didn't cover the costs incurred. We then rented for 12 months, got our heads together and gave ourselves the confidence to move on. We then decided to buy again, but in the knowledge that we were doing the right thing absolutely. OK so we lost a year's worth of house price gain by renting, but in the bigger scheme of things that is nothing really.

melf_2

I'm coming round to what you are all saying, I really do see the bonus of renting in some ways. The repairs etc. The house we have found has been done out and we really wouldn't touch a thing in there. We thought this would be a good idea as we can't afford to touch it!

It would be nice to lessen our responsibilties for a while. Suppose I'm worring about never getting back on the ladder if we don't do it now. Its always been drilled into me to own my house, buying is best. Maybe I just can't get over that and I need to.

I wil call the people you have all recommended and see what they say. I know the IP's are getting money out of us by doign IVA so I am conscious of that. The IFA's not so much as they have not charged me for my initial meetings. They haven't gained anything from us by advising what they are advising.

We need to look into this tonight. Although we do this every night and just go round and round in circles. Perhaps I need to accept that buying a house is not going to happen.

xx

p.s I live in the home counties. Don't relaly want to say more than that.

hypno06

The IFAs will be hoping for you to take out a mortgage and any related insurance because they will receive a nice commission from the product provider even if you are not paying them anything directly yourself. (I know, I used to be one!)

Keep on posting, and if it helps to put up your SOA we can see if we can give any ideas as to how you can make everyday living that little bit easier, financially.

melf_2

Hi there,

The IFA I've spoken to haev had nothing to do with the mortgage, we've just done portability from the last house so they aren't getting any cash out of us this time.

I'm so confused about what we should do. Maybe I will be clearer when I've spoken to people tonight.

melf_2

Whats SOA???

hypno06

melf wrote: »

Whats SOA???

Sorry, an SOA is a statement of affairs - if you have a look at the stickys at the top of this board you will see a post for newbies by Southernscouser.

Basically it is a list of income and expenditure, in a way that will allow others to have a look and see if we can see anything that could be cut back or made cheaper in some way.

No need to do it if you don't want, but many find it really really useful.