Bankruptcy

[maizie]

My creditors meeting is on the 21st May. If my IVA is rejected then obviously I would have to consider the possibility of bankruptcy. I know with an IVA it would take 6 years before my credit rating is ok again... is this the same with bankruptcy? You hear so many people say that with bankruptcy you would never be able to get a mortgate etc. Also for what reasons would bankruptcy be turned down. I have no mortgage.. I rent with family. My car is worth no more than £2,500 but essential for work.

Life is far too stressful!!

[coco]

Hi Maizie,

As the same within an IVA it will remain on your credit file for 6 yeara, however you can still get a mortgage after you have been discharged after a year, it maybe at a higher interest rate but still possible. As you are already insolvent hense the IVA it would be unlikely the judge would refuse you BR. I entered and IVA and failed after 5 months and now BR this was the best thing for my family and have had no regrets.

If you rent check with the contract or Landlord in case of any clauses in regards to BR but i would think you will ok on this, the car is subjective as different OR's will act differently i got to keep mine valued at 4500 but as i had 3800 existing on HP the OR could not claim this (however i was lucky that she allowed the payments to continue as she informed me that they dont have to do this), as with Scaredkez it was different as she lost her car i can't remember what the value was, skippy got to keep her car. I would say you will be ok with the car.

Hope this helps a little

(I apologise for my keyboards poor spelling and grammar)
http://coco.blogs.iva.co.uk

[Skippy]

Hi Maizie, if you are made bankrupt it will be on your credit rating for 6 years, although you are only subject to BR restrictions for 1 year, unless the OR feels you have been reckless, in which case they can apply to the courts to extend the order.

It is not true that you can never get a mortgage after BR, although if you are ever asked if you have been made BR you must declare it, and this can happen at any time in the future.

Bankruptcy can only be turned down if you haven't taken professional advice before petitioning, the judge feels that you are not insolvent or s/he feels that you would be better in an IVA.

Regarding your car, if it is essential for work you may be able to keep it, although the OR can sell your car and give you money to buy a cheaper car. However, yours may be ok at £2500, but a lot depends on the individual OR.

Finally, good luck with your IVA - I hope it gets accepted and BR is irrelevant!

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/

[ivoriva]

In regards to cars, is it the case if you can pay into a IPA you are more likely to get to keep the car if it isnt over a certain value? If you have no other assets to declare and cant do a IPA then they will probably take the car unless you can really justify its need. If they do take it, I believe in many cases they will allow it to be bought back at a fair price by a relative/friend - if that is possible.

[Skippy]

I think you're right Ivor. My friend went BR a few days after I did and as she is unemployed she couldn't pay into an IPA. Her car was taken away this week even though it was only worth about £400 - the OR wouldn't accept an offer on it, she wanted the full £400. She told them that she needed it because she has a 6 month old baby, but was told unless he was disabled she couldn't keep it.

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/

[iva experts]

Hi Maizie,

Great advice given by all posted.

I know that you probably scared about the pending outcome of your creditors meeting, but if possible try and relax and dwell on the things that are in your control - one step at a time.

Your IVA may be accepted and you may not even have to consider bankruptcy, the best thing to know is that there is always a solution to every debt problem.

If you were to go bankrupt it would be on your credit report for 6 years from commencement, you would be placed on the bankruptcy register for 12 months and if you can afford it make payments for up to 3 years.

All the best for the 21st May.


Hope this information is of use

Regards. IVA Experts

[DebtDummy]

Maizie, I wish you the best on the 21 May.

Take care

All I have left is my humour.