www.iva.co.uk

I am currently in an IVA which I am struggling to pay. I have spoken to a company which have said I can file for bankrupcy. I have a house which was valued at £192000 my mortgage is £188000 I have be told I will not lose my property as there is not enough equity to pay the creditors. Are they just trying to get money off me or do you think they can help? I have a car worth 2800 pounds which we use for work. Will I lose this as well.

Hi and welcome.

Have you spoken to your IVA company about possibly reducing your payments if you are struggling? You may need to complete a new I&E form.

If you wish to go bankrupt, please do not use a firm which charges to 'assist' you to do so. You will need to let your IVA fail first, which you can do by missing three payments.

You can file for bankruptcy yourself - it will cost £495 and the forms can be filled in online here:

http://www.insolvency.gov.uk/

At the end of the day the Trustee in bankruptcy will be the person who will determine whether to pursue any equity in your property or not - and not the bankruptcy assistance company who are currently assisting you.

Given the low level of equity you have, it is unlikely that your property will be affected greatly under bankruptcy proceedings, but do make sure that you get a professional valuation so that you have something to rely upon in the event that your Trustee claims it is of higher value.

The car is borderline to be honest, and I have seen cars of lower value taken. It just depends upon the attitude of your individual examiner I am afraid - so do be prepared to put up a fight on this point.

Please discuss with your Supervisor (IP) and find out whether a variation can be put forward to your creditors. You can always opt for bankruptcy and as long as your mortgage is paid you won't loose the house. Any net surplus would not cost much if you did go bankrupot - the OR will advise you. However speak to your IP first. Let us know how you get on.