IVA Regret And the way forward

AThornley

Hi, I am looking for some advice as i do not know which way to turn at the moment.
My wife and i are currently in the 3rd year of a IVA which runs for six years in total with Payplan, if remember rightly the debt is about 45k, we are managing ok with it, the trouble is our morgage is interest only and have paid barely anything off and also in desperation a few years ago we took a secured loan for about £12000 as a short term problem with the idea of either re-morgaging or taking a normal loan out to get this cleared off in the future, in this time we seperated and got further into dept and have arrears on the morgage of around £5000, after six months apart we reconciled and thought to sort our money issues out and joined a IVA with Payplan.
The issue at the moment is my house is in need of some major works which we have no way of paying for, The secured loan is not reducing after nearly 4 years of paying £203 per month and even when out the IVA we wil not be able to take a normal loan out to pay this off and i feel we will never pay the morgage off. Bankruptcy has been praying on my mind for the last few months but trying to avoid it, i feel i need to make some decisions as i am constantly awake at night worrying about it.
Any thoughts/Advice would be appreciated

mwarby

Bankruptcy would be 3 more years of budgeting and no disposable income, but your IVA may be the same length(if not able to release equity 6 years is not uncommon). Bankruptcy would delay your credit history being restored, as it will be on for 6 years from start of bankruptcy(your IVA entry is halfway though already)

Might be worth talking to your IP regarding the repairs, it might be possible to arrange something such as a payment break to add to end of term or a budget adjustment

owlet

mwarby wrote: »

Bankruptcy would be 3 more years of budgeting

3 years?? Bankruptcy is one year & discharge (unless the person has been serously naughty eg fraud etc).

If you have surplus income after living expenses, you might get an IPA but you won't be left with nothing. If you have property, you might lose it but it depends on equity.

It wipes the slate clean. It means a year of close budgeting but you are allowed a reasonable standard of living.
It is entered on your credit file when you are made bankrupt & drops off 6 years later.

Obviously credit will be impossible during the year you are bankrupt & difficult for 3 or 4 years after that. Many are able to get sub prime credit cards after discharge albeit with low limits.

mwarby

I was reffering to the IPA, my understanding of the IPA is it's to collect all disposable income. In simple terms I see that as 3 years of budgeting

mwarby

If the op is paying £203 a month into the iva (not clear if that figure is IVA or secured loan), there is a high chance of an IPA

AThornley

Hi, Thanks for the advice. The £203 is the secured loan. IVA is £220

owlet

mwarby wrote: »

I was reffering to the IPA, my understanding of the IPA is it's to collect all disposable income. In simple terms I see that as 3 years of budgeting

Ohh got you! Sorry x

owlet

Op you might be best putting your SOA on the bankruptcy board for advice on the way forward?

http://www.stoozing.com/calculator/soa.php