www.iva.co.uk

i am currently in a DMP, since it was instigated (2006) i have become divorced, and this was rejuvinated as a sole DMP, i am maintaining payments. family home has now been repossesed by the building society. ex wife on benifits and living elsewhere. exwife now seeking financial settlement in court even though i have only a car as an asset (in order for me to incur costs i believe) my question is, building soc not sold/auctioned house yet, can i apply for bankrupcy? (expectation is £20,000 shortfall from mortgage owed to house disposal amount)this will be on top of my DMP, plus legal cost for divorce etc costs not known

Hi and welcome,

Sorry to hear of all your problems. There is no reason why you cannot apply for either an IVA or Bankruptcy as the house has been repossessed so anything owing on it by you has now become unsecured. The shortfall would be encompassed.

I would speak to one or two professionals. Visit www.iva.com for a list of companies and reviews and give one or two a ring for free and impartial advice as to all the options open to you,

Hi - nothing to add really as it's great advice from Jan. I just wanted to say hi and and I'm really sorry to hear about everything. I'm sure the judge will see sense and throw her case out. Youmcant give what you haven't got.

Bankruptcy does sound an attractive option and will deal with the shortfall as Jan has said irrespective of when the building society sell the house. An IVA may be an option but with the uncertainty of the action by your wife it could be in jeopardy from the start.

I'm so sorry to hear about your situation and hopefully the judge will recognise that you are in no position to settle financially.

I'd agree with Michael in that bankruptcy sounds like a good thing to discuss with a professional. You can look at the long-term implications and decide for yourself whether or not it's the right option.

If it isn't then an IVA may be possible depending on your disposable income, but payments are likely to last longer and any IP will want to investigate the situation with your ex wife and ensure that this won't cause problems.

Hi Rob - sorry to read about the problems you are continuuing to face. If you are considering bankruptcy, which may well be your best option if you want a clean break, ensure your job will not be affected (check your employment contract and staff handbook if that is contractual) and also that it will not cause problems with your tenancy.

Best wishes and we're all here to support you along the way.

Bankruptcy proceedings are no way as bad as most people think, although it is best to seek professional advice at an early stage in order to ensure you are aware of what is likely to happen under such proceedings. It sounds like you have an awful lot going on at the moment - and this would take away a large chunk of your difficulties in one foul swoop.

Thankyou for the replies, it really is helpful to know there are people that can offer impartial advice and who have been there too. i have sought advice today from CCCS who manage my DMP and they are sending some info in the post, i was advised today to close the DMP and to save for the bankrupcy fee which i have agreed to do.

That's good news rumpole - hope it all goes ok for you. Let us know how you get on.