www.iva.co.uk

Hello, I would like help to decide what is my best course of action, here are the facts:

1. I have around 26k debt in my name
2. I have around 33k debt in my partners name
3. I owe around 20k to family members

4. I own a house with 155k mortgage and valued at around 200K (hard to sell currently) (If i sell now i have a 8k penality, pentality remains until june 09)

5. I am a fulltime student, the figures above include next years student loan.

6. monthly income is around 2k

myself and my partner would consider bankcryptcy if this is the best option.

I was thinking along the lines of wait 1 year, sell house keep the money and both go bankcrypt...

I'm getting by at the moment, but debts aren't going down at all, waiting 1 year would mean I can finish uni without the student loan company pulling out my funding)

Please help!

hello and welcome....keep reading...someone will post with some good advice soon

An expert will be along soon, but what are the figures, not including next years student loans, i think its unrealistic to be looking at debts you dont have yet.

What about a re mortgage as you have 45k equity , how would your monthly outgoings stand up then?

Also the last bit about going bankcrypt in a years time so you can still get your student load, i belive its illegal to be taking out loans if you know you are going to end up going down the IVA/BR route, what about getting a part time job to fund UNI instead of a student loan, also i would of thought with a montjly income of £2k you would not need a student loan

If, in a year you sell the house, you will NOT be able to keep the money if you are going to be declaring bankruptcy.
Obviously you would need some to fund a rental deposit and moving costs but the rest would have be be paid to the Official Reciever for the benefit of your creditors.

I think your need to get some proper independant advice to prevent you from possibly breaking the law.
You have income coming in and equity in your house so on paper would probably be suitable for an iva,an expert will advise you best though.

There ill be several options available to you - one of which is to sell the house now and use the proceeds to make an offer of settlement to your creditors, retaining sufficient monies for removal and relocation costs, including a suitable rental deposit. These allowances will not be possible under bankruptcy proceedings, and this could enable you to re-establish yourselves under your own terms rather than someone elses.

Best to take proper professional advice from an insolvency practitioner, as there will be several options to consider - but you should try and not borrow any more money in the meantime. The student loan company are unlikely to withdraw your funding, as this only becomes payable once you start earning at the repayment threshold.

An IVA could be proposed on the basis of a house sale in the future - as the property market is pretty slow moving at present.