BR V IVA ADVICE NEEDED !

[quark2008]

Me again, firstly, just like to say how much i am finding this forum really helpful,the minute i feel like throwing myself under a train, i quickly jump on here, and feel i'm not alone.#13;#10;#13;#10;So........... BR VS IVA,i have absolutely no assets and live in nhs accomadation.I study part time and work full time.I have a laptop for my studies that is of any value.My creditors meeting is on the 20th. #13;#10;If approved,how much time do i have to to decide whether to proceed, and when am i likely to start making paymets ? Bear in mind that i have already paid £700ish to draw up my proposal. What would i pay into BR ? #13;#10;Is bankruptcy a good option for those with no assets and will be studying for the next 5 years ? I owe 38k and will be paying 33k approx back. Any advice greatly appreciated.#13;#10;#13;#10;Mark

[kallis3]

Hi Quark,

You say that you have already paid money to draw up your proposal? Who is your firm?

I am with Payplan, and paid nothing to set up my IVA. Most companies do not charge upfront fees.

I made my first payment within two weeks of my IVA being approved.

On the day of the creditors meeting you will be telephoned and they they will tell you whether or not is accepted, and whether or not there are any modifications. If there are, you can have up to 14 days to either accept or refuse. If there are no modifications then I don't know if you still have a breathing space. One of the experts will clarify that.

I cannot advise whether IVA or BR would be right for you, but again, I am sure one of the experts will help you out.

[Adam Davies]

Hi
Bankruptcy on paper will be the cheaper option for you as you have no assets.However you may want to repay your creditors more than they would receive in bankruptcy and this is where an IVA would be better.
It is unlikely that you will have no modifications on the day so you will have 14 days to make up your mind for sure,however as you have already paid money upfront I would hope that you are clear in the direction that you want to go
Regards

[quark2008]

Does that mean the proposed IVA payment is likely to increase due to further modifications on the day ?#13;#10;

[kallis3]

It may not necessarily increase (mine didn't), but I had modifications regarding overtime, windfalls, equity in the house. Each individual will have different mods.

[quark2008]

Oh i see, well i will be paying half my salary into it, overtime ? god i wish, i was living off that before i started studying, now i can't because studies take up so much of my time, and if i fail this course i have to pay the fees back to the employer. More debt !!! I have a 50% thing with regarding this but not quite sure what that means #13;#10;

[kallis3]

Normally it means that if you do work overtime you are allowed to keep the first 10% and then 50% of anything over that. The other 50% you have to hand over

[MelanieGiles]

If you are having doubts as to whether the IVA is the right way forward for you, can I urge you to seriously think this through again before you commit on the day of the creditors meeting. You have to really want to do this, and with no assets which would be affected under bankruptcy proceedings what is it that is really motivating you to want to proceed with an IVA?