Bankruptcy v IVA

[mish1953]

Just a general query .. ive been browsing the Insolvency web site again !

The insolvency website says ...

What are the advantages of an individual voluntary arrangement compared to going bankrupt?

[?] Because you will not have to pay some of the fees and expenses which are charged in a bankruptcy, the overall costs are likely to be less. [?]

I'm confused , how does that compute ? £485 to go bankrupt, the fees being charged for IVA management seem to be much higher than the cost of going BR ... does it mean the total cost ie the costs for the insolvency service and trustee.
Reading the comments on here it would seem that it costs the punter more in an IVA ...

Have the IS got it wrong ?

Slainte
Mish

Will an automatic discharge hurt.

[MelanieGiles]

Mish

The cost of £485 is to you, but an average bankruptcy case costs around £10,000 in terms of Insolvency Service and Trustee fees and disbursements, so this is where the saving comes 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

[mish1953]

Thanks Melanie,

it's not very well laid out in their website, I read it from a punters point of view and after reading some of the posts tonight I got a bit confused. The overall cost does seem high and I guess that after those fees are taken off that there is very little left for the creditors .

I guess that puts IVA fees into some sort of prespective, it must cost IPs the same sort of money to administer an IVA .

Slainte
Mish

Will an automatic discharge hurt.

[MelanieGiles]

We reckon that dividend payments are made in less than 10% of bankruptcy cases, Mish.

I have been in lively debate about IP fees on the forum over the last couple of days, but you are right in that it takes a similar effort for both types of procedure - of course depending upon the level of assets and complexity of the bankruptcy estate.

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