unsure if iva is the right path for me.

[g.t]

Hi,

I am currently applying for an IVA, but am still a little unsure if its the right path for me.

I live in a 1 bedroom flat (which i have a morgage for 25% (£20,000) with the other 75% rented) and have my son stay over every weekend. I also have a partner who works part time who lives with her daughter and whos rent agreement is soon to expire and has to move.

We are looking to move in together as i need more space as my son is now getting older and has to share a room with me at present. And as mentioned she is needing to move due to the rent agreement expiring and cannot extend.
At present i have unsecured debts of £53,500 and bring home £1940 per month and have been advised by the IVA practitioner im using at present that i should be able to pay £661 each month into my IVA, i think its a little tight but maybe managable until i move.

How ever if i was to move into a larger property in the near future(Rented) i dont know how this would affect my IVA when my living costs go up?
I dont know if it would be best to try bankruptcy i know i could lose my property but as im looking at moving, i also have a car with an approx value of £1500 which i use to get to work and pick my son up.

I would be gratful for any advise anyone could give.

[MelanieGiles]

Hi gt and welcome to the forum

I think that payments of £661 per month are very tight, but would need to see a summary of all of your expenditure to advise further.

Moving in with your partner seems an excellent idea, especially as you both have children, and you will be able to share some of the costs. If I were you, I would sort this out before entering into an IVA, as you will need to price out all of the new costs such as rent, council tax and water rates, light and heat, and insurances, as well as your general shopping and household budget. Your partner's income will also need to be confirmed to ensure that you are paying a fair share of the new combined expenditure.

Bankruptcy is also an option, but only you can decide if it provides a better way of dealing with your debts. This really depends upon how bothered you are about repaying any of the money you owe, as it is rare to return anything to creditors under such proceedings as the costs are quite high. And as you point out if you have equity in your property this will vest in the bankruptcy trustee.

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