Hi, We have a joint mortgage on a property that is £30k in negative equity and has been on the market for a year. We have found a buyer but Nationwide have refused a short sale. Our mortgage is £1100 a month just in interest which is really a stretch and is not even touching the capital. I am 3 years in to an IVA just in my name. We want to get out of debt as quickly as possible. It looks like our only option now is to hand the keys to our house back and stop paying our mortgage. Then when they sell it for a stupidly low price and we know the full amount of our shortfall we can deal with our debts jointly. With this brief description of our circumstances, does Bankruptcy seem like our best option?
Sorry you're having to go through this when you've been in your IVA so long.
I know that you mention on your posting on our sister forum that you've spoken to your IVA company. I suggest you speak to your IP directly as they will give you some good advice.
If you have no other assets, then bankruptcy could definitely be an option, so could a second IVA.
I notice from your post on our sisiter forum that it's just you in the IVA. Has your wife any other debt apart from the shortfall?
Please speak to your IP and feel free to contact an expert on here to chat it all through too.
Yes it is just me in the IVA. The only other debt my wife has is her interest in a £2000 ovedraft with the Halifax ( of which my half is covered in my IVA ).
I am going to speak to my IP today to consider my options. I had a variation to my IVA last year to take in to account a potential mortgage shortfall although if we hand the keys back the shortfall will be more than antcipated and will probably need another creditors meeting to approve.
If I can do that I will be clear in 3 years and perhaps my wife could do an IVA for the shortfall instead of us both going bankrupt.
Would bankruptcy be our way out?
Posted - 06 June 2012 : 20:50:56
