Hi Helhan
Under bankruptcy proceedings your property will be safe, providing your valuation is accurate, as there is little equity available for creditors and it is covered by "low-value" provisions within current insolvency legislation - ie a Court would not award a possession order. If you do go bankrupt, do make sure a quick deal is done with the Official Receiver for a family member to acquire your beneficial interest for a nominal sum - say £1 plus and undertaking to cover legal costs.
Your car would be taken from you, however, and you would be given a replacement allowance of up to £3,500.
It is only you who can decide your best course of action. With £700 per month you have the ability to offer a decent IVA, but this means entering into a five year arrangement to ensure that your debts are repaid.
Your decision should be made on the basis of the level of moral obligation you feel towards repaying your creditors. If you feel a low or little responsibility, then bankruptcy proceedings may be the best option for you, however if you really want to repay as much as you can, under a realistic time period, with some forgiveness granted by the creditors, then an IVA may be better.
Also please remember that bankruptcy is a privilage rather than a right. You still have to convince a judge that you require the protection of a bankruptcy order, and with that level of disposable income I rather think they might tell you to try an IVA first. I am seeing this happening more and more in the local Courts I deal with.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk
