www.iva.co.uk

My partner and I have currently got an IVA, however my husband is about to change job and we will need to move. I have negative equity in my property and will not be able to recover full funds for my mortgage and second charge. I have to relocate, there is no other option. Would bankrupcty be the option. Would we still be able to have a bank account, even if cashcard only?

Hi
Yes you can still have a basic bank account,set this up prior to your bankruptcy.
Bankruptcy is always an option and will clear all your debts including the shortfall from the house,however if only one of you is to declare bankruptcy the other person,if part of the mortgage,would still be liable for the whole shortfall.
How much would the shortfall be ?
It is worth a chat with your IP to discuss all options as your creditors will not want you to go bankrupt.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

I think that our negative equity would be £4000 - £14000 short, not done anything about it at the moment, a considering our options, both parties (on mortgage) would go bankrupt if forced too!!! I think we may have entered into IVA slightly blind, as now we have no other option but to sell up and relocate, (due to husbands job) , I think we might have been better off going bankrupt!!! I have since been told IVA's are more suitable for people needing to keep their home. When we move, we will be renting a property. Our mortgage is currently 264,000 which we could probably get, however we would need to find the funds for home improvement, which we currently do not have , as we have 4 children and IVA agreed £100 more a month than anticipated. I would imagine due to the stamp duty that the property would probably only sell at £250,000 , but as we are unable to apply for further loans, would imagine that we have no choice but to apply for bankruptcy. Your opinons would be very welcome. thank you.

Hi
IVAs are suitable for both home owners and non homeowners depending on the circumstaces.
Is there a time limit for you to find a new proprty ?
If so then bankruptcy could be your best option,and many forum members have stated that it is best to find and secure your new rented propery before you both declare bankruptcy[because of the credit checks]
Regards


Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Is there an option to rent out your property, as you run the risk that your IVAs will fail given the shortfall you will incur when the property is sold. If this is something which does not bother you, and you feel that bankruptcy is now your better option, I would discuss this with your IP as a matter of urgency.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

If we decided that bankruptcy would be the answer, how long approx would we be tied up into making payments etc.. As the IVA is 5 years, is bankruptcy similar?

Hi
A maximum of three years and a maximum of 70% of your disposible income.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp