To IVA or not Iva

fatbelly

To answer an earlier question, nonpriority debts are just that. I wouldn't even pay them £1. If they want to go for a ccj, just add that to your existing ones. The ccjs either just sit there or get secured by a charging order, for what good that will do them.

When I mentioned a stable situation I meant 'one that will stay roughly the same for 6 years'.

Concentrate on the important things for now. You have mortgage and rent arrears than an iva will not help with

ManyWays

So to add to the priority debts, large non priority debts, negative equity problems, you also have a mortgage with a bad credit lender and the mortgage is likely to be going up during the IVA.

Stopping paying into your pension is not going to solve this mess. Nor is taking a break from the mortgage payments.

I think you should seriously consider walking away from the lot and going bankrupt. You have no asset to protect here, you have a large, expensive liability. You can hand the car back and get one through work.

sourcrates

Manyway`s raises a good argument there actually, it may seem like the nuclear option, but bankruptcy would solve all your financial problems with the click of a mouse.

The alternative is around a decade (or longer) paying back what you currently owe, quite a chunk of which is priority debt, an IVA would serve no useful purpose whatsoever in your situation, and if another "life event" were to happen, and you got further behind with mortgage/rent, well the matter may be taken out of your hands altogether anyway.

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82146385#Comment_82146385

I understand what you are saying and certainly something to consider, but my only worry is that with going bankrupt, where would i live?

I lost both parents 2 years and 4 years go, where alot of this debt came from (lived abroad and had to bring them back and solictors etc), i wouldnt be able to rent somewhere with a bankrupsy, and no home. working for the LA in housing, i know there is little to no accomidation through them. so its a bit of a sticky wicket. i ahve very little family, let alone being local.

I was just hoping there was a way out of all this mess, and IVA did seem like an option, but as you all have explained, my life is too variable at the moment.

ArtyJ931

You would still be able to privately rent with a bankruptcy. I would suggest spending time trading the bankruptcy board so you are familiar with that process more.

fatbelly

If you can keep the property and a reasonable quality of life, I'd just carry on. Keep bankruptcy in your back pocket.

wanttogetmylifetogether

https://forums.moneysavingexpert.com/discussion/comment/82147553#Comment_82147553

sorry to act dumb, what do you mean by this?

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82147806#Comment_82147806

I`m guessing fatbelly is referring to getting on top of the priority arrears first, and don`t worry so much about the non priority stuff, as their ability to collect what`s owed is much less than secured lenders.

If that`s not possible and things take a turn for the worse, you always have a get out clause.

mumtoomany

Hi, go over to the debt free diaries section and read the thread, "Hopefully debt free before mortgage renewal in June 2026". Similar to you the poster is single with a very low wage. He cleared all his debts, in less than a year. His debts were similar in size to your priority arrears. A very motivational thread.

As others have said, I'd ignore the none priority dept for now. Just keep the roof over your head.

Good luck, hugs, mumtoomany.x

Shadyocuk

I would echo the thoughts that you should seriously consider bankruptcy and deffinately do not enter into an IVA.

Whilst none of us know for certain what the future holds , in my view there is a higher probability that in the next few years the property price will go down rather than up and that your mortgage will go up rather than down. Its as certain as can be that electricity and gas are going up again in January , council tax and water will go up , food and everything else will go up. You also need to consider property repairs and anything else that life decides to throw at you.

Your current budget is on a knife edge and unless you have a very good reason to assume that your income will increase above inflation it wont be sustainable.

I accept that renting is not going to be easy as even CCJ's wont help , let alone bankruptcy.

If I was in your position I would focus all my efforts on building an emergency fund and investigating all my housing options , would it be possible to rent if you did it before going bankrupt?