www.iva.co.uk

We are coming up to our second year review and whilst we can struggle to manage the way we are, our problem is our house. Its in major need of work, so much so that today we have water constantly dripping through our bedroom ceiling onto our bed, and have damp right through the front of our house. Our insurance wont pay out, saying we have never maintened the roof (why fix something if it aint broke?) and we have no money to get the major repairs done. Our only conclusion would be to go bankrupt and move into a rented property, but with a 1 yr toddler this decision cant be taken lightly. We really are at a loss as what to do, the way our home is deteriorating we cant leave it as it is until the iva ends, which is another 4 yrs away. Can anyone offer any advice on what to do, and if BR is the right path to take, how does this work and will we be financially better off, a rented property in our area for a decnt one is £800+ per month, would this even be possible in BR?

You and your family have the right to live in decent conditions. How much are you paying mortgage wise and would you be cheaper renting??

With Bankruptcy, you get more to spend and also a holiday allowance.....has its advantages for you.....

Hey boychild,

Sounds like you need to get this sorted, especially now it's winter! Well, seems like it. How much do you think the repairs will cost? Can you do them yourself or do you know anyone who can help? It might be better if you ask for a payment break so that you can free up that money, I'm sure if you explain everything to your IP they will agree.

If you go BR now you will still have another 3 years to pay an IPA, I know it will probably be less but you may have lost your home. It really depends on what you want to do in the long term. X

I agree with Viki - speak to your IP and see what they say. BR is a big decision - yes your payments will probably be less, but you may lose your home and car (if you have one) if it's not necessary for work.

I'm sure if you speak to your IP they will be understanding as you can't live like that, especially with a young child.

BTW a holiday allowance isn't guarenteed either - it's at the discretion of the OR, and if it makes the difference between you having enough disposable income to make payments into an IPA or not, it will probably be disallowed.

Hi Boychild.

Definately a time to look at all the options and to make the decision as to what is ultimately the best thing to do for you and your family.

As others have suggested, the first port of call would be your IP, put the problem on their table and see what they suggest, afterall they are not going to want your IVA to fail if they can help it.

Being a great believer in always being fully informed and educated before making such an important decision might I suggest that you may find it useful to talk to a BR expert as well ... Paul Johns who posts as 'Reviva' is a very approachable and switched on guy ... might be worth a call to cover all eventualities.

Debbie