iva or bankruptcy

[teo]

Is an IVA more expensive than just going bankrupt ? I dont actually want to be bankrupt because of my house. Will my IVA appear in the newspapers ?

[aguise]

Hi
you will not lose your house in an iva but may have to release some of the equity, and no your name does not appear in the newspaper, but does go on the insovency register, but no one would really look unless necessary for something. In bankrupcy you may lose your home and may still have to pay monthly payments for up to three years, an iva would be for five years but any debt left at the end would be written off.

If you post more details, income,equity in house,and how much is left after living costs (dont include debt payment ) and your amount of debt and number of creditors. Then everyone can advise on possiblew solutions.

Ang

[iva_squirrel]

Hi Teo,

Unlike bankruptcy, an IVA is not advertised in the newspapers, and the only people who will know about it are you and your creditors. All IVAs are registered at a central database maintained by the government's Insolvency Service, and details of these are passed to credit reference agencies.

Yes, IVA is more expensive than bankruptcy as you make payments for 5 years rather then the 3 years. The level of monthly contribution may also be higher.
You don't put forward an IVA to save money, you do it because you need or want to avoid bankruptcy.


Julia Simavi

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[MelanieGiles]

It depends on what you mean by expensicve. Julia is correct in that you actually pay over more money into an IVA, but the professional costs are generally much higher in bankruptcy. Of course this cost is borne by the creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk