Bankruptcy? or IVA?

[Steph007]

I'm about 56k in debt and have negative equity in my house, I thought about an iva but was told that bankruptcy may be the better option. But i just can't have my name appearing in our local paper and friends and family finding out. My parents are elderly and I think this would worry them into an early grave! Also my ex partner was violent towards me and he could find out my new address via this bankruptcy appearing in our local rag. Could I change my name by deed poll then apply for bankruptcy? Also I was told that i could "buy" back my house for a nominal sum, would I continue then just paying the mortgage & the secured loan? Or would the secured loan be written off? I believe that you make payments to creditors for 3 years, in general how much per month are these? I also have a car worth about 7k would this have to be sold? with regard to future credit ie, mortgages, do creditors treat a bankruptcy differently to an iva?? Sorry for so many questions! Just trying to weigh up my options.

[MelanieGiles]

Hi steph and welcome to the forum

If you change your name by deed poll, your former names will also be listed in the bankruptcy advertisement so you gain no real advantage there.

You will need to continue to make the payments to your secured creditors regardless of whether you enter bankruptcy proceedings, offer an IVA or propose a DMP settlement, as these creditors have security over your property and therefore the ability to commence possession proceedings in the event that you default.

Your monthly payments would be based upon your individual income and expenditure, and it is unlikely that you would be allowed to retain a car valued at £7,000 - but the Trustee may allow you a sum of money, perhaps £3,000, to buy a replacement cheaper model.

I do not feel that bankruptcy really has any worse effect on credit ratings, than doing an IVA or a DMP, but this is a decision for individual lenders to make, and some might have differing opinions. When you are seriously in debt, preserving your credit rating is usually the last thing to be considered.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk