Bankruptcy or IVA - HELP

[andymac]

I have approached an IP, who has looked at my case. The only IVA option is a full IVA; I was hoping for a full and final, but I am being told that because I have 100 GBP per month spare, that I could only be put forward for a lump sum, plus 5 years of 100 GBP per month. Is this a likely result? albeit given a very sparse detail of my situation.
If this is the case, then surely a BR, with similar monthly payments for 3 years, but without the cash lump sum payment would be a better option? HELP?

[MelanieGiles]

I personally think that paying £100 into an IVA is completely unsuitable and not cost effective for creditors. Take a second opinion on the advice you have been given.

Bankrupty is usually a better financial option in many cases, but you have to weigh up all of the other factors as well. Where is the lump sum going to be coming from?

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

[Skippy]

Wasn't there another case like this on the forum a while ago? It seems a very strange idea, and if you've got no assets that would be at risk in BR it might be the better option.

You say you only have £100 spare per month - expenditure allowances in BR are much more lenient than in an IVA (strange I know!) so you might find that you don't even have that. For the OR to want an income payment agreement you have to have more than £100 surplus. Even if you have £100 you wouldn't end up paying all the surplus - there is a table in my blog showing you what you might expect to pay.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[andymac]

Hi All;

Thanks. The surplus would come from a family member.

The IP initally suggested I pay a lot more, but I just dont have the spare money to pay; I could see myself in exactly the same position as other posters, whereby I have to go for BR further down the road, and after paying in a considerable lump sum, then the plan failing, only to go BR, where I might have decided not tp pay anything, seems a huge dilemma to me.

[andymac]

Additionally, part of the problem is that I have actually taken bills from the last 12 months for a couple of utility supplers, and used this to come up with my monthly spend on the costs; the IP thinks this is too high, and they wont get accepted, but I can prove these bills are what they are, is thisnormal practice? am I to turn out the lights?

[katy]

I found when we started to thrash out our expenditure with our IP if we had evidence that a regular bill was high, we had to cut back on other parts of expenditure. So less on housekeeping, shopping etc just to make it 'fit'
We were so desperate at that point I think we would have stopped eating just to not get nasty letters through the door - ridiculous!

[Skippy]

Please don't allow your IP to manipulate your expenditure to 'fit' an IVA - this is a recipe for failure. What you spend is what you spend - within reason of course!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[katy]

I agree totally with that Skippy, in hindsight I would have been stronger. Debt makes you do silly things it seems.
Stand up to them Andy and if it's not accepted then gain help and advice from here, I would never have dared to go bankrupt if it wasn't for the help and dispelling of myths on here.

[lily]

At the end of the day you have to do what is right for you in your own circumstances. This is such a stressful thing to happen to anyone, its not the case that you dont want to pay the money back, its just that to do so would be virtually impossible. I have spoken to a couple of people who say they are better off in an IVA than they were before it as the outgoings were so high. But if you have no assets and in reality not enough disposable income to fund an IVA, I dont think you should ever feel guilty about going BR. Debt brings people to their knees, its the most difficult thing I have ever been through. Move forward in the best way you can and leave the debt, stress and shame behind you, with whatever tool is best for you.

lily