When deciding whether to propose an IVA or declare yourself bankrupt, you will get a mine of advice telling you one way is better than the other, but for clients of mine who have no assets which would be at risk from creditors I usually advise as follows.
If you feel morally obligated to pay your creditors as much as possible over a realistic time period, and understand that creditors will really make you pay as much as they can possibly squeeze, then an IVA is likely to be a more favourable option.
If, however, you feel no obligation to repay your debts, and are happy to walk away from them - perhaps because of unfair pressure which has been exerted upon you by telephone calls and letters, then bankruptcy may well be the best route. The Official Reciever is generally more lenient about ongoing payments, and you are discharged after one year generally.
When seeking advice beware anyone who tells you what they think you should do. Let them paint the options and make up your own mind by taking sufficient time to think each one through carefully.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp
