IVA v Bankruptcy?

[Lusky]

Hi All,

 

I am in such a mess that I had just about made the decision to go bankrupt. My mortgage company is about to start legal proceedings and I'm ashamed to say that I have around £60k unsecured debt. I have spoken to an IVA company who think that thaey might still be able to salvage the situation if I put the property on the market. Also that that an order could be put in place to allow more time for sale of property?

 

I would really like to hear from anyone who has had any similar experiences before I make a final decision.

 

What reactions did you get when bankruptycy was published?

How easy was it to find private renred accomodation that required no credit checks?

Is bankruptcy as horrific as it sounds?

 

I really need to make a decision soon and need some non-judgemental advice.

 

Thanks.

[tomterm8]

Hi, Lusky, is your property in negative equity?

 

Have you called the National debt Line or CCCS etc to discuss the situation? As professional debt advisors, they may be able to suggest other options.

 

i would also suggest looking at http://forums.moneysavingexpert.com/forumdisplay.html?f=136

[Lusky]

Thanks. Have spoken to National Debtline who think that bankruptcy is a strong option. I am meeting the IVA guy next week to talk to him as we are not 100% sure the option is viable.

[tomterm8]

Thanks. Have spoken to National Debtline who think that bankruptcy is a strong option. I am meeting the IVA guy next week to talk to him as we are not 100% sure the option is viable.

 

I've got to admit, personally i think that IVA's are only in rare situations a good idea. they only really work if you can be absolutly sure that you will be able to make repayments. In many cases, you end up paying more for the IVA than you would have during bankruptcy... and you should expect your credit record to be almost as badly damaged as if you declare bankruptcy.

 

Lots of people fail to meet the repayment schedule, and end up bankrupt anyway.

 

I've contacted someone who might be able to give you some advice.

[CCCS_Matthew]

Hi Lusky,

 

I think after reading your situation you definitely need to be looking at all the options available for you. You've mentioned that you've contacted someone about an IVA - I would be wary as there are lot of companies out there that will charge you money even if your IVA proposal is not accepted. We would be more than happy to discuss your circumstances to see whether an IVA would be a possibility and also discuss bankruptcy with you as well. I obviously can't give you too much advice here without knowing your whole situation, but have you spoke to your mortgage lender about the arrears? Is there anything you could put towards the arrears to make and arrangement to stop legal proceedings?

 

Obviously you are looking to get something sorted as soon as possible, you can certainly give us a call on our helpline on 0800 138 11 11 and we will be more than happy to give you free, confidential, non-judgemental advice

 

Take care

CCCS

[Lusky]

Wow, thank you guys for going to this trouble. I am extremely grateful!

I will be giving CCCS a call later on today or in the morning.

Thanks again guys x

[sequenci]

Is there any equity in the property?

Has the mortgage company given any information about how they can help if you have financial difficulties? How far away is the formal action?

[Lusky]

I have a telephone appointment with CCCS Fri morning.

[Lusky]

I've just come off the phone from CCCS.

I can't praise them enough - the guy I spoke to was great!

As I thought really - they have advised me to go bankrupt. I really knew that this was right all along but think I just needed someone who knows what they're talking about to tell me!

Anyway, am off to see a rented flat this afternoon and with any luck will be my first step to a new start.

Keep em crossed for me;)

[powelll]

Best of luck - I assume that you were made aware that you need to check with a landlord that bankruptcy will not affect your tenancy??

[Lusky]

Just been to see the landlord and the flat is mine if I want it!

I did make them aware that I had financial problems they didnt seem too fussed. No credit checks or refs required. Result!!

[powelll]

Just been to see the landlord and the flat is mine if I want it!

I did make them aware that I had financial problems they didnt seem too fussed. No credit checks or refs required. Result!!

 

Brilliant news. And I know some landlords are fine with bankruptcy as they know you don't have any other debts!!