starting to worry i have done the wrong thing

[fionaj]

I am only 1 month into my IVA, and am starting to worry i have done the wrong thing. My debts are 39,000 plus 7,000 student loan (not included in iva). I have no assets and rent with my boyfriend. Should I have gone bankrupt? Also me and my boyfriend would like to get a mortgage at some point in the next few years. If so then was an IVA the best option over bankruptcy? I am really confused, I hoped I would feel better after IVA was approved, but I'm not sure I do. Also, if we were to get a mortgage (he would fund deposit) - are we able to borrow more, and use this to pay the debts? Sorry for all the questions!

[MelanieGiles]

Hi fionaj

It is strange that you are having these thoughts now and not prior to entering into your IVA. Did your IP give you advice on all options, and if so what was it that made you decide upon an IVA.

I estimate that 80% of my clients would be "better off" going bankrupt, but the fact is that most of them would prefer not to due to stigma, publicity and the fact that most people genuinely do feel a responsibility to repay their debts.

There will be no problem in you and your boyfriend taking out a joint mortgage, so long as he pays the deposit, but you will need to seek your IP's permission which ought to be granted so long as your new mortgage payments are no more than you are paying in rent - or do not disturb your ability to fund your IVA contributions.

Don't worry about asking questions on the forum. That is exactly what it is there for!!

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

[Oliver]

Hello Fiona

I agree with Melanie, the majority of people will often be financially better off going bankrupt but choose to complete an IVA because they wish to avoid bankruptcy.

As Melanie rightly says as long as your Partner is willing to pay the deposit and the fact that you are taking a mortgage does not adversely effect your ability to meet your IVA commitments then this should be fine with your IP.

Have a good think about things. Remember that if you really feel that an IVA is not for you there is always the possibility of going Bankrupt. Don't rush into this decision though as these worries have probably clouded all the benefits an IVA has.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
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