i could go bankrupt?

[lee_w]

I have £55,000 of debt. I goe an iva thru clear start. I'm paying £300 for 6 years. Ihave no assets. Is there any point paying all this money when i could go bankrupt? Many thanks Lee

[MelanieGiles]

Hi lee and welcome to the forum

Why did you enter into the IVA in the first place, if you are now having these thoughts? Did your IP explain all of the options to you at the time you entered into the arrangement?

[lee_w]

Hi thankyou for your reply. No options where discussed. They even had to adjust a few of my figures because i couldnt afford the payments so put through i spent less in diesel for example to help me get excepted. Ive had to borrow money from family and friends to get by and its getting me down

[rayb]

Hi Lee,

If it is really getting to you and the payment are unaffordable it may be worth your while to go bankrupt as you have no assets etc. You may have to pay an income payments order for 3 years but the payment is normally much less than the IVA payment. Please do remember that when and if you go bankrupt your credit history will be impaired again for a further 6 years from the start of the bankruptcy

[kallis3]

I agree with Ray - you would probably be better off going BR. You can then start again with a clean sheet.

[lee_w]

Thankyou. I spoke the the national debt helpline yesterday and they said that i might struggle to go bankrupt as i had kept up with my iva payments for the last year (even tho i had to borrow)

[rayb]

I cannot see how they can say that. If you are borrowing to maintain the payments then it is not working. May be worth popping to see your citizens advice bureau and ask there advice

[lee_w]

just been looking at citizens as was going to go today but none are avail now 'til mon morning. My iva payment is due today but have put it on hold cos i really fell i was missinformed and to pay £300 today to start filing for bk next week seems pointless.

I understand it could jepordise my iva but it's a hell o a lot of money and ive already paid them £3600 of which none has reached my creditors!

[rayb]

I know what you mean. At least the 1st year virtually all of my payments went to my IP and not alot to my creditors

[chris.g]

As far as I understood it, you could file for br anytime during your IVA without a problem.
You should either get your payments reduced to enable you to pay them more comfortable or file for br.

[lee_w]

Is it true that after going bk in some cases you may still have to make some kind of payments for up to 3 years?

[rayb]

Thats what I was saying in my earlier post to you Lee. You may have to pay an IPO for 3 years but it is alot less than the IVA payment in most cases

[lee_w]

lol, sorry ive got so many windows open trying to read everything i can to help decide what to do.
Thanks again for your comments

[Viki.W]

Hey Lee, have a look at Skippy's blog, she lists what you may have to pay into an IPO. Good luck, Viki X

[lee_w]

thanks Viki had just read it. I just cant seem to make up my mind!

Is there any real difference between finishing an Iva or going bk? Ive heard their just as bad?