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If you are struggling with your IVA get advice and help here
By Sergent
#21152
Advice needed !!!

I was in an IVA which was going well ( 3 years left) but then I was signed off sick after birth of my daughter. I am still unable to work, I cannot pay the IVA. My flat is in my name only I am in negative equity to the tune of 35,000. if I go bankcrupt will I have to leave my home?
User avatar
By Steve Jackson
#21182
Hello Sergent and welcome to the forum.

Have you spoken to your IP about no longer being able to pay your IVA? Have they agreed that it should fail? If so and you decide to go bankrupt, given the amount of negative equity in your property, you will not have anything to worry about. Your house will not be at risk and you will be able to remain living there as long as you continue to keep up the mortgage payments.

For more information about what will happen to your house of you declare yourself bankrupt, have a look at the following article: https://www.beatmydebt.com/news-article ... -house.htm
By Sergent
#21208
Thanks for your reply Steve. That is good news. I have spoken to my IP and they have said that it might be best to allow the IVA to fail and for me to go bankrupt hence my question.

I can just about pay for my mortgage payments with the income I have but will not be able to pay anything to my bankruptcy. Will I still be able to go bankrupt?
User avatar
By Hayden
#21242
Hi there Sergent

One of the advantages of bankruptcy is that you do not have to pay anything unless you can afford to do so. If once you have calculated your reasonable living expenses (including your mortgage payment) you have nothing left, then you will not have to make any payments towards your creditors. However this certainly does not stop you going bankrupt if you have decided this is the right thing to do.