do you think i should go for bankruptcy

[james06]

i am currently in an i.v.a, which has been running for 12 months. I am still struggling with my costs as live by myself. I earn on average £1,100 per month and my disposable income is around £900 per month...i am concidering bankruptcy as rent my property and basically think my credit rating is wrecked for at least 5 years now anyway.. do you think i should go for bankruptcy as a overall better solution...will this give me better freedom financially?? My debts are around £22,000..if i finish i.v.a, will that company charge me a massive amount too??

[MelanieGiles]

Hi james06 and welcome to the forum

If you continue with your IVA you will simply continue to make the payments you agreed to, which include the IP's charges - so there will be no more fees that those you originally agreed to pay at the outset.

It sounds to me as if you are getting fed up with the IVA and now see bankruptcy as a quicker and easier option - and that may be true, but what was it that drew you to the IVA as your first option in the first place, and how much are you obliged to pay into it each month.

[Adam Davies]

Hi
£900 per month disposible income ??
How much are you paying into your IVA ?

[MelanieGiles]

I read it that the £900 was the amount of expenditure, but I could be wrong. Seems very high for disposable income!

[Adam Davies]

Hi
I think that you may be right Mel
Regards

[james06]

Hi
£900 per month disposible income ??
How much are you paying into your IVA ?

[james06]

Hi there.. Thanks for the reply.. i'm currently paying £260 into my i.v.a.

[james06]

Hi james06 and welcome to the forum

If you continue with your IVA you will simply continue to make the payments you agreed to, which include the IP's charges - so there will be no more fees that those you originally agreed to pay at the outset.

It sounds to me as if you are getting fed up with the IVA and now see bankruptcy as a quicker and easier option - and that may be true, but what was it that drew you to the IVA as your first option in the first place, and how much are you obliged to pay into it each month.

[james06]

Hi mel....Thankyou for your reply. Well to be honest, i panicked last year and just went forward with the i.v.a without looking at bankruptcy...Maybe as the position i'm in, bankruptcy would have been the best option, as single, don't own property...my annual review has just been sent to my i.p, so waiting to hear from that.....Is looking into bankruptcy out of the question? I can pay towards my debts, it's just i have a lot of outgoings and still feel to be struggling even with i.v.a??

[Reviva UK]

Why don't you call your IP and go through your income & expenditure with them.

From their reaction you will be better placed to decide if you can sensibly move forward with the IVA or investigate Br further.

You would no doubt contribute towards your debts in Br but depending upon an agreed I/E this might be 50 - 60% of the disposable and is payable for 3 years.

There are also consequeces that may impact upon your ability to rent, bank accounts etc etc etc so some work needs to be done here before you take the step.

[MelanieGiles]

Your IP should have clearly discussed bankruptcy with you as an option last year, when you decided that the IVA was the best way forward. There is nothing to stop you from petitioning for bankruptcy now if you feel it is a better option, I just feel that a lot of time and effort has been wasted by you not being properly advised in the first place.

Paul gives you now good sensible advice to discuss matters with your IP, and it definately makes sense to reappraise your finances and options now to avoid jumping from the frying pan into the fire.

[Soulgrowth]

Hi James

I just wanted to say that I empathise with you ... the continued tight budget can be really wearisome can't it and I do think that there is somewhat of an element of feeling 'trapped' in an IVA.

Do consider ALL your options and use the Forum for some good and sound advice ... and I am sure that you will make the right decision for yourself and your personal financial situation.

All the best

Debbie