We owe £75k as a couple and have no equity in our house. We do however have a charging order for £25k on our house from the Natwest. We are both working and have 2 small children. We have approximately £135 per month free (including our tax credits, child benefit) and working within National Debtline guidleines we are currently paying this out proportionately. Therefore the questions are; 1) Do you think that Bankruptcy is a viable option for us? We just want to wipe the slate clean from our past 2) Does the charging order remain or get cleared with the bankruptcy? 3) Does the OR work with similar figures to the Debt Plans? That is to say will our standard of living be similar to that now? 4) Do you know of any scheme where you can add all your information to get an idea of how the OR will treat your case? Obviously there are no guarantees but it all seems very scary that you apply for it but have no real idea of how it will affect you - with an IVA they take your details and make an 'offer' as such before you sign up and say yes!
I believe the charging order will stay unless you give up the house but not too sure on that one.
All of your disposable income (if it is over £20 per month) will go towards your debts once things like normal household bills are paid. There are certain allowances extra, such as a small amount towards a holiday.
Until you declare BR and the OR looks at your case then you won't know what you will be asked to pay.
With an IVA they will take everything into account but they cannot say 'Yes' until there is a creditor meeting which could be turned down.
Speak to an expert regarding the options available to you - the initial advice is free.
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant