I am approaching completing my second year of iva & am now wondering if I would be better off going bankrupt instead although I am managing ok with the iva. My reasons are as follows
My ex partner is named on the mortgage of my house & wont want to stay on it forever ( she has signed an agreement prior to me entering iva as required in the iva terms ), I am paying interest only on the mortgage, the mortgage outstanding is £111,000, the house is now valued at £85 - £89000. My roof has been leaking on the house & I had the insurance company out to it & they have said the leak is down to wear & tear so they wont pay out - I had it repaired locally, it leaked again in another place so I had it repaired again & now it is leaking somewhere different again. I have been quoted approx £8000 to have a new roof fitted. This obviously is never going to happen as I have no way of raising the money & why would I spend £8000 on a house that is already in £20,000 negative equity that I will never be able to buy on my own anyway.
I have no assets except a £1000 11 year old car, no fancy TV's or computers etc
I accept that I am in the position I am because of myself & my ex who cleared off & left me with all the debt but I now think iva was the wrong way to go.
My iva was set up by Mel but I am now with Creditfix & I am reluctant to talk to them because of what I keep reading on here even though I know I will have to at some point but I thought I would ask on here first to see if my way of thinking is correct.
Any advice would be much appreciated.
Bankruptcy may be an option but if you are going to let the property go [which seems a reasonable thing to do] the shortfall would be captured within the IVA and you could continue on. It may be cheaper to rent than the mortgage so you would still be able to make payments and could possibly even increase them. However if renting would be more expensive than paying the mortgage then you could not afford the IVA so bankruptcy would be the best way forward in this instance.
Either way your ex will be liable for the shortfall to the property but you should be protected.
Hi sorry about your problems, it's a bumpy ride, but worth it in the end, I'd say stick with your iva bankruptcy is a quick way out, but I think you have more to loose, plenty of advice on this forum to help you through it. Good luck.
I know what you are saying about sticking with it but I can't see any point as what happens when the iva ends? I am then stuck with a house that I have to sell & will be in negative equity so then I have to find half the money ( my ex has to find the other half ) which I have no way of raising + I still have a leaking roof that I have no money to fix it with.
