If your going for a iva or dmp then im pretty sure your house wont matter unless you have a lot of equityt in it and they might require you to realease it in order to pay a lump sum toward the iva towards the end but if your credit is no good and you cant remortage or its only going to make you more in debt then it mostl likely wont be pursued
its only for bankruptcy that the house is an issue as its an assest for creditors to cling to if there is equity in it but generally theres not or very little so the OR official receiver leaves it alone
while your on a iva and your paying it nothing should happen to your home from the creditors for any debt you have your mortgage is something else but as long as your paying it then its fine
if your debt is unsecured debt ie credit cards, overdrafts, store cards loans ect then its not secured on your house So your house and any money you may have in it is irelevant unless the credit card companies play hard ball which is unlikely once your on a iva or a dmp Thats the whole point of a iva unless you default on it
make sure that none of you unsecured creditors try to get a secured loan which although its rare there have been cases of credit card companies turning unsecured debt into secured debt due to the terms and conditions of the orginal agreement which no one ever reads
this is then secured on your house which mean that they can in slap a charge on your house force you into bankrupcty ect
also dont be tempted to take out one big loan which is secured on your house and its unmanagable
the main thing is to get the interest on any credit cards store card that you have frozen and down to 0 percent that way your not stacking up more and more debt
while you have to pay a couple of hundred of pounds to go bankrupt that its its a one off fee, you dont have to pay any further debt as its all gone - your credit score is screwed but most likely it is anyway and bankrupcy is only for a year now rather than 3 years so witin 4 years you could easliy be back with a good credit score and you dont neccessarily lose your home if its done right
it will only show on your credit file for 36 months and when your credit scored for anything they only check back 3 years so your bankuptcy wont show so you will be able to start buidling up a good credit score again
With an iva its five years of month in month out of paying that money regardless you cant get any credit untill your out of an iva which is 5 years and it could take a possible 3 years after the five years to repair your credit anyway so its a much longer process andif you cant pay it and default then the next step would probably be bankrupcty
you just have to work out whats better for you take your time and dont make a rash decision - you dont want to go the iva route and then two years down the line realise that bankrupcy would have been a far better option as long as you know what each option means and the final results of it then you will be fine