iva or bakrupcy

[jojo1368]

i got divorced last year and our house was voluntry repossed the balance outstanding was 77,000 and 30,000 for a loan we had with the mortgage. i recently phoned the mortgage company and asked for the balances as interest is still being added to the loan ! I was told that the mortgage account was 0 and closed just leaving the loan account does this mean they have just written off the 77,000 ?? if so this would bring my debts down to 45,000 ish and would an iva be an alternative ??

i have worked out i could afford �150 a month

[CheekyChops]

How much did the house sell for?

If the mortgage is now at nil, it seems that it sold for at least �77,000 which was enough to repay the main mortgage but depends how much was left over to pay off the loan.

[jojo1368]

no the house sold for �112,000 ish but actual mortgage was 185,000 ish the 77,000 was the outstanding amount left after the house was sold

[jojo1368]

this is why i was so suprised when he said the mortgage account was closed as i didn't think they would just write off 77,000 worth of debt

[themas]

I doubt whether they have written it off. It has probably been transferred to another account. Certainly, you will be legally liable for the shortfall.

Even if the debt was "only" �45K & you had no other debts it is extremely unlikely an IVA would be accepted - most creditors look for 40 - 50% of the outstanding balance over a 5 year term.

Unless there are any reasons why you should not go bankrupt (& you need to research this and take advice from CCCS or CAB - not from anyone who is in the business of "selling" ivas) that is probably your better option.

[jojo1368]

ok thanks very much for advice was already looking to go bankrupt but thought iva would maybe be an option as don't realy want to go bankrupt