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| T O P I C R E V I E W |
| boychild |
Posted - 06 September 2008 : 18:06:56
We are currently into our second year of an IVA however we are left with little or no money each month, and have a 1yr toddler to think about. Our home is in major need of repair, new roof, damp problems etc and we simply dont have the money to pay for the work, and cant risk leaving thes problems for another 4 years as by then i think the roof will of actually caved in. We are considering bankruptcy and moving into a rented property as a last resort, but we are desperate for advice and the best route to take. We have already have a variation agreed by our supervisor as i had to go part time since having my baby, its unlikely they will be able to help anymore. |
| 1 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 06 September 2008 : 19:37:28
Hi
it would appear you have 2 options.
Continue with the IVA or declare bankruptcy.
To be honest I'm biased (went BR a few years ago)but I've never understood the attraction of IVA's or DMP's. In both cases your expenditure allowance is very limited and you are required to pay 100% of your disposable income for a minimum 5 years. In DMP it could be for life!!!
Even when these options are chosen to protect the family home I would say that in 90% of cases they aren't sustainable.
However the decision as always must be yours and agreed by you both. If BR is the way to eventually draw the line under your debt and start afresh.The first thing to do is stop paying the IVA payments. Secondly look around for a cheap surveyor if you want to stay in your house and you're not sure how much, or if there is any, equity in it.
Then to advise you is straight forward and all you need can be gleaned from this forum.
If you don't want to keep the house, stop paying the mortgage and secured loan as well. Use this extra money for your BR fees (£495 X 2=£990),
your rental deposit (usually 6 weeks) and your 1st months rent in advance.
The lender cannot begin repossession until 3 mortgage payments are missed. Likewise your IVA will technically fail once you have missed 3 payments. So amass as much cash as poss for the above reasons and start to look for a rental soon with a view to moving in early new year. When the IVA is failed and repossession proceedings begin it will take at least another 6 to 8 weeks for anything to happen. Move into the rental early Jan and both go BR immediately afterwards. It's easier to obtain a rental property before BR as they usually carry out credit checks.
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