My wife and myself are in a IVA which we started in August last year. We have defaulted and asked our supervisor to ask the creditors to take a lower payment. We were due to pay over 5 years approx 50k. This debt is due to us trying to help out my brothers business, by paying for materials on the promise we would get this back. His business failed and so we were left with the lot. We have few assets our house is valued at 120k mortgage 108k I think a forced sale would reduce the value. We have a further property approx value 120k mortgage 100k again a forced sale value iI think would be less. Do you think we are better going bankrupt and trying to get a loan from other family to offer the insolvency something rather than loose the house ?? Thanks for the help
The official receiver has up to three year to decide whether to sell your properties so he/she may see if property prices improve before making a decision and you could end up making three years of payments if you have over £20 disposable income. If you have a valid reason for reducing your payments within the iva, then your creditors will likely accept the variation. What has made you doubt the iva?
Have that chat with your IP to make sure they've got all the information and see if you can find a way forward. Bankruptcy can affect your properties later on so do think it through and only proceed when you're 100%.
Your IP should be able to and be best placed to give case specific advice.
Last edited by Shining on Sun May 13, 2012 6:49 am, edited 1 time in total.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Surely this was something that you carefully considered before entering into the IVA? If so, what is now causing you to change your mind about your decisiion? No-one apart from you can really tell whether banktruptcy is a better option - as it will only affect you personally and of course your creditors who will have little choice in the matter if that is the route you deem to be best.
