Im part way through going down the IVA route and keep questioning whether bankrupcy would be better. I owe 87k and have about £600 per month to offer creditors. Mortgaged but no equity at all in the property. Small business owner of a limited company though.
Although my co-directors would happily carry on until I became a Director again so I would remain employed. The only reason I see in favour of the IVA is no risk of losing my house. However with no equity in it would this really be the case?
Would value a few professional opinions!
Sounds as though an IVA may be better for you than bankruptcy as there is no guarantee that you will keep your house. The OR will keep an interest in it for two years and three months before deciding what to do and who knows what will happen in that time.
You will have to pay an income payment agreement for three years and the allowances have been really cut back recently. Fees are also just about to go up to £700.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
For a thorough professional opinion you should contact someone off-line where they can spend more time with you to discuss the issues. The forum is a great medium for snap advice, but I would always prefer to speak more fully with clients in depth if my opinions are really sought.
The directorship is only one issue to be dealt with. Your shareholding would be come the property of the Official Receiver and this can lead to problems. I agree with Melanie that you should seek some free advice and have all your questions answered.
Hi - Mel and Michael are both verygood with self employed cases and you can also research a few firms at www.iva.com. Good luck on taking that next step! x
