trotskie need advice on declaring bankruptcy

A question about : trotskie need advice on declaring bankruptcy

Hi There
I have just received an unexpected tax bill for Ј5000 which I feel is going to be very difficult to pay I am a home owner and self employed .
I have an unsecured loan for Ј10000 and credit card bills of Ј10000 I am just about managing to make the payments on all payments but feel this latest bill might make me look towards seeking an iva or declaring bankruptcy.
Has anyone been in a similar situation or have any advice.
Thanks Trotskie

Best answers:

• How much equity is there in your property?
• Would you be happy to risk losing your property, in a BR? Or even handing the keys back and walking away?
  If yes, that is the obvious route to take. If you don't want to lose it then that is where factors like equity, or the lack of it, come into play. There is a risk of losing property, even if it is currently in negative equity, in a BR, because the Official Receiver can opt to do nothing with it for a period of up to 3 years (in practice that is more like 2 1/4 to 2 1/2 years before looking seriously at it).
  Your attitude to the property, and risk, is key to your decision really. That doesn't mean IVA is necessarily the right way either, by the way, but it may be an option in this case.
• There is a comparison of IVA or bankruptcy here https://debtcamel.co.uk/hard-choices/iva-vs-bankrutcy/
  You haven't said much so it's hard to say what would suit you.
  Self employment can make an IVA more difficult if your income is erratic.
  A house with equity in it can be a big problem in bankruptcy. And one with no equity now could have equity in a couple of years time as DorisTrousers says.
  If there is a lot of equity then selling the house perhaps should be added to your list?
  Or pehaps a DMP for your other debts to let you pay off the tax bill first?