Hi everyone. As some of you know im in an IVA which is ticking over nicely. Ive accepted another job the other end of the country and shall be moving soon. I own a property with my ex which I currently live in and my ex contributes to the mortgage as we have kids who also live with me. We both agreed to put the house up for sale as i wont be able to afford my share of the mortgage and rent another place and i know if it sells my half of the equity will go to paying off my IVA of which i still have 4/5 years to run. I would like, eventually to buy another property for myself and the kids, however if i stay in the IVA i have 4/5 years left, plus it stays on my credit rating for 6 years meaning it will be 11 years or so before i have a clean credit score and i will be in my late 50's so unlikely to get a decent mortgage. However if i go bankrupt, the OR would still get my half of the equity, i would be discharged after a year so it would be 7 years or so meaning i can start to rebuild my life sooner. I would appreciate your thoughts and advice before I speak to my IP. Thank you [:)]
Goffy the 6 years runs from the start of your IVA not the end. If you go BR it will start again from the BR date.
Lending institutions will lend to ex IVA'ers once the record is clear ( though some have their own in house policies that will make you wait an extra 6 years, this will apply to BR too).
The biggy with BR is that it can't be failed and you are likely to be only making payments for 3 years. Make sure it won't have an adverse effect on the new job though.
Best of luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree with Foggy that your credit file will clear up quicker if you remain in the IVA. It is also possible that you could clear your IVA from the sale proceeds and move on as normally you retain 15% equity in the property. If you offer this money in lieu of ongoing payments creditors may accept this as full and final or alternatively you could keep this money to fund relocation costs, rent in advance, deposit etc.
In bankruptcy you would lose the equity and have to make ongoing payments whereas in the IVA you may only have to do one or the other. Speak to your IP and good luck.
I sold my flat when in my iva to make a F&F offer.
after losing my job and getting new one,
but with lower pay. (happier doing new job)
left me enough to start a new life with no debts and move in with my g/friend.
so now just have 4 years to go before c/file is clear
IVA now over with and it was worth it.
now starting my life again,
Whilst you currently are subject to a performing IVA, I would only consider the route of bankruptcy as a last resort. In my experience creditors are quite generous with relocation allowances, and whilst home ownership for you into the future is a fairly high priority, I don't see that bankruptcy will aid with this at all - and may indeed work to your detriment.
