IVA or Bankruptcy?

[Scruffyhound]

Does anyone know which is best? This is a long post sorry! I have worked all the time since I was 15. I was laid off 5 months ago. I then fell pregnant (which was an accident but a nice one!)17 weeks now going to job seekers but dont think anyone wants a pregnant woman?! I had my own house which I brought with money from the settlement of my divorce. This was home for me and my son at 116K I brought it 3 years ago. I found a partner and wanted to live with him so my house was put on the market as his job was a well paid family job and we lived some distance away from each other. It did not and still is not selling and just like loads of other people is in negative equity about 90K now I owe 110K. I have gone though a letting agent. They found a tenant for me and the tenant is now 2 weeks late with rent and think it will come to getting him out. I cant afford to move back and look after the house and cant afford to pay rent and a mortgage. So at this point Im lost really. I rang a debt agancy up and they suggested an IVA. Anyone got an advise? Im stuck and stressed!

[3andahalfmonkeys]

you will be covered by the dps scheme won't you? also have you spoken to tenant. -could be an oversight maybe.

[Scruffyhound]

Im not sure about the DPS? I have no direct contact with the tenant he has until tomorrow to pay as he paid on Friday with a cheque and it bounced and hes should of gone in yesterday with cash and did not. So the agency are giving him until tommorow to pay or will start procedings as my mortgage payment is due. I dont want to be an arse or anything but I have bills to pay and I will be in arrers.

[addy911]

An IVA would normally put your house at risk, but not in your case as you are in negative equity. It would mean that you would be debt free in 5 years, with minimal monthly payments to make which would have to be met.Your household (with your partner) would need to show a regular income coming in too.

[RockChick1984]

Just be aware that if you take an IVA it is the same principle as a bankruptcy, you will be unable to get credit, renew your mortgage etc for at least 7 years (2 years after IVA finishes) however even after that u will still struggle. Can u not get the mortgage interest paid by DWP, or switch to an interest only mortgage for a while? Or any mortgage protection insurance? Xx

[addy911]

i think a dmp would be better for you, thinking about it all, my dh could sort it for you if you want - totally up to you....