really don't know what to do.

[louiseh]

We're in the process of applying for an IVA all the paperwork ready to post, we've had the valuation £123,000 mortgage £99,000 secured loan £14,000 so there's a small amount of equity, debt £70,000. Problem is we live in a flat, the grounds of which carparks and garages have required insurance payouts for subsidence, we had to fight for these further payouts unlikely, just discovered what may be subsidence closer to blocks of flats, no official survey yet.

Would we be better off selling up fast, then going for an IVA, declaring ourselves bankrupt to get rid of the whole problem or carrying on with the IVA application.

I don't want to stuggle through an IVA for a few years then get faced with a massive bill for repairs ( which we obviously couldn't pay) or worse still serious negative equity because the place is unsellable and would this fail the IVA in the fourth year anyway if we we're unable to provide a lump some realease.

I'm sorry the question is so long winded really don't know what to do.

[MelanieGiles]

Hi louise

It may be an idea to sell your flat, but surely any repair work required due to subsidence would be covered on your buildings insurance. Do you also have a NHBC guarantee?

Whether you should propose an IVA or declare yourselves bankrupt is a choice for you. If you are only doing the IVA to preserve a relatively small amount of equity, and have no close ties with this property, then bankruptcy may be your best option. Of course your decision rather rests on the affordability of an IVA and the strength of your desire to repay your debts also.

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

[neverending]

Hi
Just to add that if you are unable to raise a further mortgage in the final year of your IVA, due to negative equity or other reasons such as affordability ,then it is quite common for your IVA to be extended for a further twelve months.Your IVA would then be concluded.
Regards