Do we sell our home and rent or do an IVA?

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Itsallouttherenow
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by Itsallouttherenow » Fri Mar 02, 2018 7:10 pm
Ok. So we are on the brink.
I have very recently admitted to a very large amount of debt to my husband. He was blissfully unaware of it all. He took it well, very well. No shouting or anger. And asked if I'd told my family. He demanded I did as soon as possible. He was expecting them to bail us out. I confessed all to them and said our only options are to sell or IVA route. They said sell. And they won't be bailing us out. NOW he has gone mad. The anger pouring out. So upset at the thought of losing our home. He akways saw this as our safety net. And now I've lost it all.
Finances
Value of property £240k
mtg 145k
Debt 80k.
If we sell we have an issue where there is only 56 years remaining on our lease. It would be impossible to sell and we have to extend it as part of any sale. This costs 15k plus and takes 6-12 months.
By selling at at least 225k we can clear everything. Start again. Clean slate. We would rent a 3 bed semi (currently squashed into a 2 bed flat with 2 growing kids) for 1200 a month. Currently our mtg and debt repayments are costing 2100 a month and that's just min payments. It would be a fresh start. But I don't think our relationship could survive this.
Our second option is to go down the IVA route. We clear and include everuthing and work out a realistic budget and we would have to stick to it. We would obviously have a wrecked credit file for at least 6 yrs and then woukd have to start again. The benefit woukd be that we coukd keep our flat and benefit from any further equity increase. And more importantly our relationship could survive this. We would have to cope with the space issue and swap bedrooms when the kids are older so they have more space. An IVA would also ensure that the spending would not spiral again as there would be no access to credit.
Now this is all very imminent and decisions need to be made quick

Our Income now only pays our debts, mtg and household bills. We have 46£ left. This is before even food or petrol. All everyday spending now goes on credit card. Therefore just increasing the debt we are in.

I need advice please
It's a complicated situation and a very stressful.one.
Any help gratefully recieved.
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Mrs_Brown
Posts: 110
by Mrs_Brown » Fri Mar 02, 2018 8:45 pm
Whatever decision you make, I would speak with a couple of companies. I didn't, but maybe I should have.

I didn't have the housing or relationship situations you are in, however each month I was in the same boat with money and that was stressful enough. Remember you may not get the house sold immediately and it may not reach the value you need so explore all options.

Ultimately an IVA or BR were my only options. My only regret about the IVA was that I hesitated a year before doing it and could have been further along the journey.

Good luck however you decide to go fowards.
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luluj
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by luluj » Sat Mar 03, 2018 6:39 am
Your situation almost mirrors ours 10 years ago. We chose to sell and move into rented. Although hard giving up our home it was the best thing we ever did. We sold and went into an iva - our iva allowed us to payback 100% of our debts to creditors; cleared the secure loans attached to the house and move on in life.
My husband was clearly angry but stood by the decisions and our families were very supportive although 'disgusted' by our over spending.
Its taken 10 years to re-build trust with our family and still my mum occasionally asks if we are ok with money now.

It is do-able but takes togetherness and dedication to making sure you work on living to a budget as a family.

Good luck
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kallis3
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by kallis3 » Sat Mar 03, 2018 9:04 am
My parents were unaware of our problems, neither was my husband but we got through it.

Please speak to some companies for some expert advice.
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Foggy
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by Foggy » Sat Mar 03, 2018 12:04 pm
As mentioned above, have a chat with a couple of companies to discuss the whole situation. Personally I would hunker down where you are, get through the next 5 or 6 years, then work on the bigger house once you are debt free, if that is still what you want at that time. Without a lot of luck, getting back on the property ladder after selling up can be very difficult.
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