Could you advise please?

[happyhev2010]

Hi everyone,
Things seem to be going from bad to worse for me and my husband. We had high hopes of selling our 1 bed flat in London (really nice flat,relatively central, and marketed at 180k - dropped in price twice since March 2010) and if we sold at 180k we potentially could have cleared what we owed to our bank (approx 108k, and what we owed to keyworker approx 60k)and have a small amount left over to make a dint in our other non-secured debts (approx 20k.) We have a tenant (we now live in rented acc. in Manchester) in the property but due to high service charges we also have to pay £300 each extra to cover all the costs. Our renter is now saying he may leave - meaning we wouldn't have a chance in hell of making all our payments.
We're really struggling to figure out what our next step is. We went to CAB a while back and they seemed to think we were doing ok (we're not - we're living day by day, and really struggling)but if renter moves - we've had it. Does anyone know where we stand in terms of IVA vs bankruptcy?We want to sell and start paying off our creditors in the normal way, but if the flat doesnt sell we may be left with no choice in the matter. Would hugely appreciate any advice.Many thanks indeed.

[Michael Peoples]

Hi Happyhev and welcome to the Forum.
You should seek some free advice from an IP firm. Even if the property sells at near the current asking price the costs of estate agents and solicitors will eat up most of what is left.

If you drop the price further there is a probability that you will be left with the costs of sale added to your current unsecured debts. It may be worth considering surrendering the property or discussing with the lender as to whether they would be prepared to pay the costs of selling it and any shortfall could then be added to the debts.

An IVA or bankruptcy would include any shortfall to the property whether that was the lender or the Keyworker scheme and it may be worth considering. However, debt management may also be an option if you longer had the additional costs of keeping the London flat.

There are options and it is worth seeking some advice. Good luck.

[happyhev2010]

Hi Michael,

Many thanks indeed for replying. Are you from an IP firm?Would it be possible for me to contact you directly via email to ask your advice further?
Many thanks

[Michael Peoples]

If you look under the experts section my telephone and email details are there. You can certainly contact me and I will do what I can to help.

[Shining]

Hi and welcome to the forum, I would certainly take some professional case specific advice and our professionals who post on the forum do come highly recommended and Michael has pointed you in the right direction for their contact details.

You could also try www.iva.com for a list of companies and some reviews of these, it is important to take the case specific advice of 2 or 3 companies to get that all important impartial advice. x

[Tina Shortland]

Hi Happyhev, welcome to the forum from me too - sorry to hear what a rough time you are both having - as Michael rightly says, you will have options, its just a matter of finding the right one. Lesley makes a good point about iva.com - the reviews on there will help you decide who to approach when seeking advice fom different companies.

Lets hope your tentant decides to stay a while longer!

Regards,