how can i deal with the mortgage shortfall

[markb]

Thank you again for your help, I think voluntary repossession is the way seen as they wont speak to me in order that I can arrange selling it myself! dont really have any other choice.

Also has anyone heard of Thomas Charles, I spoke to them and seem to have had some good advice regarding final settlement IVA'S, for some reason their web site does not seem to work, so just wandering if any one had heard good reviews of them.

[MelanieGiles]

I have just checked their website and it does seem to be working now Mark.

[markb]

If the shortfall is large on the mortgage am I better to go bankrupt and buy the beneficial intrest in my own property which would only be about 15k, or am I better to look at an IVA and offer a full and final settlement.

I mean out of bankruptcy and an IVA which one will allow me greater freedom in the future?

I am so confused at the moment I dont know which way to turn, but at the same time I know I need to make a desicion.

[kallis3]

With an IVA you will be paying for 5 years, with bankruptcy you will normally be discharged after twelve months, but may have to make payments for 3 years.

Your credit rating will be shot for 6 years in either case. With BR, you may be asked in future if you have ever been bankrupt and you obviously will have to answer yes. You don't normally get asked that about IVA.

The other part of your question I can't help you with I'm afraid. Melanie or one of the other technical experts will be along to help you with that, although of course, the ultimate decision is down to you.

[MelanieGiles]

How would you fund the purchase of equity in your own property, Markb if you are bankrupt? Would a third party help out?

The only personl who can make the decision between IVA and bankruptcy is yourself - try to imagine whether you want to cope with payments for the next five years, or whether a quicker solution might be a better way forward.

[markb]

Between mine and my partners parents we could raise the funds to pay the equity off and then pay them back over a period of time.

[MelanieGiles]

Definately worth thinking about - but you would not be allowed to pay anything off this debt until you were at least discharged from bankruptcy, and perhaps later if you were deemed to need to pay an Income Payments Order/Agreement.

[markb]

Thats what I thought, its so hard to know the best thing to do, I just dont want to make another stupid mistake that could cost me in the long run, like you said unfortunately no one can wave a magic wand, I need to make the right choice

[MelanieGiles]

When I am advising clients, I always ask them to think about where they want to be in three, five and ten years time.

In three - your bankruptcy will be long discharged and an IPA/IPO payment will be concluding. From that time on your surplus income will be yours.

In five - your IVA will be coming to a conclusion - and from that time on your surplus income will be yours.

In ten - any DMP payment ought to have concluded, and your credit rating will have been restored for four years.

Of course if you are going to borrow money from relatives, and this has to be repaid, you will also need to take that timeline into account.