think ive made my mind up

tatty1985

Hi all,

I have been doing some research over the last few days and I am think bankruptcy is the best option for me.

I have been in IVA for about 6 months but I feel it isnt working for me and due to the arrears on my mortgage they are starting repossession as I can not possibly pay the arrears off in one payment and the amount they want as repayments will leave me short on my IVA and other bills.

So questions are,

do i apply for chapter 7 and if I am not accepted for that I will automatically get a chapter 13?

I don't really want to keep the house (negative equity of about 30k) but if I was to keep it how does it work? do you just keep paying the mortgage and then the arrears after the bankruptcy? anyone done this before?

Also if I do lost the house how long after becoming bankrupt is that likely to happen? how likely am i going to be at renting property when my credit file is shot? (anyone with this experience would love to hear how you handled it)

Is there anyway of finding out now before going bankrupt how much the IPA is likely to be?

I obviously do not have the bankruptcy funds but If I don't pay mortgage and I don't pay the IVA this month then I will be able to pay it.

If me and the partner both go bankrupt do we have to pay the fees twice?

sorry if the questions seem dim I just have made a lot of bad decision with good intentions lately and feel this is the last resort that I am hoping will stop this circle of forever struggling and trying to pay things off.

I just want to live normal again without the worry and stress of robbing peter to pay Paul.

Really appreciate any help or advice

at the end of my tether :-P

sourcrates

Hi,


You need to be speaking to National Debtline about this, your situation raises some complex issues, as you are in an IVA, that would need to fail first.

I can`t comment on the house, others may be able to, renting is possible, many people do it, i think a larger deposit, and going via a specialist agency may help there.

Any IPA is determind by your level of disposable income, usually if you have £20 or more, you will get an IPA.

Bankrupcy is an individual process, two people, equals two bankrupcies, hence two fee`s, the fee`s are normally saved by withholding other credit or debt repayments.

tatty1985

thanks I will call them and ask for some advice

I thought it would be two separate payments.

Just concerned that once I stop paying bills to save for the bankruptcy the bank may repossess the house before i have enough to pay both bankruptcy's and have a deposit for somewhere else to live.

Think i defo need to do a bit more research

fatbelly

I've no idea what you are talking about when you say 'apply for chapter 7 and if I am not accepted for that I will automatically get a chapter 13?'

I assume you are in England/Wales if you are currently in an IVA, not the USA

No form of bankruptcy is an option while you are already insolvent in an IVA.

If you cannot afford your IVA payment then talk to your IP. The mortgage payment is a higher priority and it sounds like your IVA has been set up incorrectly.

But yes if you had no equity to protect, why did you choose an IVA over bankruptcy?

sourcrates

fatbelly wrote: »

I've no idea what you are talking about when you say 'apply for chapter 7 and if I am not accepted for that I will automatically get a chapter 13?'

I assume you are in England/Wales if you are currently in an IVA, not the USA

It applies to bankrupcy in the US, as you suspect, not applicable over here.


https://www.nolo.com/legal-encyclopedia/what-is-the-difference-between-chapter-7-chapter-13-bankrutpcy.html

WhenIam64

OP has an IVA with Payplan

https://forums.moneysavingexpert.com/discussion/comment/75057042#Comment_75057042

tatty1985

after speaking to pay plan this was the option they advised me to go with.

It had been set up correctly with correct figures but the payment plan I was in with the mortgage people prior to the IVA being set up ended in Feb (set up IVA in dec) and they now want more than I had originally budgeted for in the IVA so I am short each month.

the house have sent a letter saying they are looking at repossession (first letter) unless I can get the arrears cleared.

We thought we wanted to keep the house as we kept thinking at least we are on the property ladder and we have struggled for so long to try and keep the house if felt like to let it go would be failing but now the more we think about it the more we realise that we are never going to be in a position to do it up. one bedroom is completely riddled with damp. we are stuck in the IVa for 6 years so it is only going to get worse as there is no way we can do repairs etc while in the IVA

So I have been trying to do some research to see if Bankruptcy is the next option (hence the chapter 7 and 13 kept coming up, I didn't realise that was only in the USA ) I just don't want to rush into any decisions and make things worse but I do not know how long I have before the repossession starts and I do not want to be left homeless as my little boy is only two. My biggest concern is going bankrupt and then not being able to rent anywhere due to bad credit file.

It will be both my partner and i going bankrupt as we have over 40k debt between us and if the house is repossessed then obviously that will need to be added and the mortgage is for 120k and house is probably only worth 90k now if we are lucky.

Sorry for the ramblings just a bit lost as to what to do

silvercar

If you went bankrupt and got rid of your other debts, would you be able to afford the new mortgage payments in the short term and eventually afford to fix up the house? That is the only reason it may be worth keeping your home.

If not, then stop paying the mortgage as its throwing money to the mortgage lender who are going to repossess in any case. Save this money up for a rental deposit. Then go bankrupt.