Opinions needed please- BR

[aragorn]

Hi,

My situation is really getting me down now.Here is my situation, i wonder if anyone has an idea what i should really do, i have spoken to National debtline who told me they cannot advise due to us being in an IVA already.

1.Husband made redundant but now has a job but £6,000 less a year.Have approched IVA firm and they are looking at a variation. Iva has been running for 2 years but will need to run for a further 4 if variation accepted.

2.Only Last week I was informed by employer that cuts will be made-I myself may face redundancy in 2-3months.

3.House is falling to bits- large interest only mortgage which when IVA is paid will still be a big issue.

4. Having problems with my 10 year old child due to stress with Our situation.

Is it time to 'throw in the towel' and go bankrupt? We have been so foolish running up the debts in the past and don't want to dodge our responsibilities but we feel we have had enough now.


Thanks in advance for your time.

[MelanieGiles]

Hi aragorn

I'll try and deal with your queries in the same order they have been raised:-

1 If your income has been cut, so should your payments, but I do not see why you have to pay for any longer. Did your IP recommend this route to you?

2 Something outside of your control that you can only react to if and when it happens.

3 The danger of interest only mortgages is that they are never repaid unless you start making additional capital repayments. So you may really only be renting your own property, although you do have the benefit if capital appreciation.

4 Sorry - I'm no expert here, but hopefully Lily will be around later to help her as she is!

If everything is getting a bit much for you, then bankruptcy may well bring the relief you are looking for, but how much equity do you currently have in your property?

[aragorn]

1.The variation team said we would most definitely have the IVA increased because it is a significant cut of salary.

2.We have approx £15,000 equity. But it will definitely not be enough to clear IVA.

Thankyou.

[MelanieGiles]

But your equity will be at risk if you are to go bankrupt. Are you prepared to lose your home and go into rented accomodation?

[aragorn]

Yes i do not mind rented accomodation that was plan B if husband was unable to get a job . The Equity money is not ours it's the creditors.

One more quick question please:
If i went from full time employment to part time employment prior to bankruptcy .The genuine reason to provide more stability for my daughter- would an OR view this as us trying to get out of paying as much into an IPA?

Thanks for your help.

[MelanieGiles]

Not at all - if you are going to declare yourselves bankrupt, the OR will have no views as to whether you work full or part time.

[aragorn]

Thankyou so much- you are a star,i think i will get some sleep tonight!

It's the not knowing what is round the corner and the constant fear of barriers that we could face over the next four years that could put the IVA in jepoardy once again.

I am going to see how it pans out now- i'ts the next three months that will decide our future.

[MelanieGiles]

Keep posting and using the forum for support during the next few months, whilst you make your mind up what to do.

[Reviva UK]

Hi aragorn

just a thought that might calm any fears - if you want to talk through what happens in Br and the actual procedure I will be hapy to spend some time on the phone

It may just put your mind at rest so you can see if you can get the IVA to work rather than worry about what if's

[AlanO]

Hi aragorn,

Suggest you follow up on Paul's offer he is very good and he will put your mind to rest

All the best Alan

www.debtdr.co.uk