Bankruptcy / IVA, unsure which way to go.

Minifreak2000

I've spent the last 10-15 years struggling with credit card debt, and have finally decided that enough is enough. I've got about £33k on credit cards, and £9.5k on a personal loan, all of which are in my name.

Our house is mortgaged in both mine and my wife's name, value approx £185-190, mortgage is about £135k. Our mortgage is a fixed rate due to expire next June 2020. I'm an IT contractor running my own LTD company, with myself & wife taking home a salary and dividends.

My understanding is that with bankruptcy, although its quicker, I will have to sell the house, and I cannot be director of my own LTD company anymore? I don't have any other assets as such, my wife's car is leased, and the other car is in my daughters name. I got rid of my leased car a couple of months ago to reduce monthly payments.

I've filled in the Debt Remedy form on the Step Change website, but it is proposing Bankruptcy / DMP & IVA. I'm not sure which way to go.

mwarby

Do you have a surplus in your I come and expenditure when debts aren't taken into account ? Posting your statement of affairs maybe useful

In bankruptcy the OR or trustee would sell your home, at some point in the next 3 years. It's possible for someone else to buy out the ORs interest to prevent that(ie give the OR the money they'd likely raise if sold after costs)

In an IVA they are looking to release your share of equity through mortgage or secured loan in year 5 if that's not possible a 6th year if payments