www.iva.co.uk

What should I do? I have approx £15k debts across 3 credit cards, 1 loan and 2 o/draghts. My husband has £38k debts across 3 credit cards, 1 loan(£26k) and 2 o/draughts. we share 1 o/draught. I have student loans as well (not included in total figure above). My husband has been in tempory work on and off - just been laid off and is today trying to find another job.

We own our house, mortgage £95k, perhaps equity of £10-20k (but not sure), Housing Assoc we bought from will get some of sale value if we sell in next 4.5 years. We are with payplan paying £220 per month. Not all have agreed to this yet and still getting interest added by a number of the creditors.

Should we just go bankrupt or would an IVA (once husband in perm job) be better. I am realising that payplan as it is is not the long term answer. Also husband works in accountancy industry - earning about £8-£12 phour. If he's unemp would we get bankruptsy more easily or will creditors hold out for perm job and an IVA. I really want to make a firm plan to get out of this mess asap. Any advice?

You are committed to a Debt Management Plan that will last you for over 20 years. That cannot be in your long term interest, you may well repay your mortgage first. I am pleased to see you have already recognised that.

Once your husband has a permanent position, you could consider an IVA although to be frank the monthly payments will have to be a fair bit higher than £220 per month, to make it work.

So far as bankruptcy is concerned, that may be an option, and in fact creditors would have little or no choice in the matter. It would largely be up to you. However, if you were both to go bankrupt there is a likelihood that you would lose your home based upon the equity figuires you have stated. Also, you indicate your husband works in the accountancy industry. What sort of job does he do please, as I suspect a bankrupt accountant would not have an easy time finding employment? Also, what do you do for a living please?

Ian

I also work 3 evenings pweek getting approx £450 per month. At moment we get £350 p month tax credits and Child Ben of £120 per month. I am trying to get freelance massage work, just starting up so no guarantee of set income from that.

My hsband is part qualified accountant. He does month end stuff in finance function - although he's never been really happy to do this, so maybe bankruptsy would be a good way to change direction.

Can I clarify; if we decided to go for bankruptsy you said there would not be an objection.

When you present a debtor's petition for bankruptcy, the court is meant to enquire of you whether or not any attempt has been made to apply for an IVA. The petition documentation has a provision for you to advise the Court of this. Section 273 Insolvency Act 1986 provides for the Court to appoint an insolvency practitioner with a view to advising whether you should attempt an IVA, although the court seems rarely to apply this.

The creditors do not receive notice of a debtor's petition, and so take no part in it. As I say, though, you are likely to use your home unless you have a charitable family member who is prepared to buy the equity off the Trustee.