IVA v BR - which way to go?

[charley_babe]

Hi,

Is there anyone out there - a company other than the CCCS (but who are good/reputable) who can advise me?

I’m not sure if I should go BR or get an IVA. The CCCS were very anti BR and believed I should give the creditors something rather than sticking two fingers up at them and giving them nothing (in the case of BR).

I would just like another person to talk things through with who are unbiased as to which option I should choose – is there any such a person/entity?

I don’t know what to do at all, I would like to go BR but it’s the stigma that’s worrying me and that no
one will ever touch me again.

I owe approx £50k on cards / loans.
I am about to start renting my own flat (I’ve checked the tenancy agreement and cant find anything about the Landlord booting me out if I go BR).
I have a car that’s worth about 2k. I’ve spent lots on making sure its mechanically sound so don’t want to get rid of it. I also have ME / Chronic fatigue and rely on it to get to work and get to the shops as I couldn’t carry my shopping home or on the bus.

Any advice would be gratefully received

Many thanks

Charlotte

[Adam Davies]

Hi Charlotte
Bankruptcy will nearly always be the quickest and most cost effective way to deal with your debt. On paper it is financially easier than an IVA.
If you have no assets and are not concerned about repaying your creditors then this is probably the route for you.
Bankrutcy will be on your credit file for six years, same as an IVA but you will have to declare that you have been a bankrupt if asked in the future
Regards

[charley_babe]

Many thanks Andy. Will the bankruptcy be held against me until the day I die?

[rayb]

Hi,

Only if you are asked to declare it on any forms otherwise no

[kallis3]

You will only have to declare it if asked at any point.

Visit www.iva.com and give one or two companies on there a ring for further advise. They'll explain all your options to you.

[liamjames]

Hi charley_babe,

A Bankruptcy will only be held on your credit file for six years, just like any default. However, if you are specifically asked if you have ever been Bankrupt on an application for (eg) a loan or a job then you should disclose this as it could cause problems if you knowingly submit false information.

The CCCS will always regard Bankruptcy as a last resort, but that's not always the case. From your details I would definitely look into it, as you have no property and may well be allowed to keep your car.

An IVA is a big commitment, and whilst it's an absolutely fantastic solution for many people I think it's a very bad idea to let someone push you into it for the wrong reasons.

Phone a few companies and ask them for advice - IVA.com lists some recommended Insolvency Practices.

Good luck x

[charley_babe]

Thank you so much

They (CCCS) are calling me back at 1pm to see which route to go down but I just dont feel ready to commit to either.

Thanks again,
Char x

[Adam Davies]

Hi
Well don't
All options should be explained to you, including bankruptcy and just because the CCCs are funded by creditors shouldn't mean that they are anti bankruptcy.
Whatever the best solution for you, rather than your creditors is the right advice.
Regards

[charley_babe]

I really feel they are putting me under pressure to go down the IVA route. Thank you so much.

[kallis3]

Don't let them pressurise you into doing anything you're not happy with.

[Tina Shortland]

Hi Charley_babe, the last thing you should ever feel when making a decision as important as this is pressured.

As the others have said give one or two companies a call to get more advice and compare what you are being told and don't do anything until you are comfortable moving forward.

Regards,

[MRBLUESKY]

hi charlie i am not a professional,but have experience in completing a iva last year,based on the stricter rules regarding iva,,if i was starting out now to cope with my debts,in a similar position not being a homeowner i,m afraid i would be looking for advice to go bankrupt.

[kallis3]

How did you get on charley? Please think long and hard before making a decision. Speak to one or two others as advised.

[Shining]

Hi there, as others have said only ever proceed when you're 100% certain you've made the right decision. I had a fella come to my house and try to pressure me into signing all sorts before I found the forum and I told him 'I didn't get into debt overnight and I won't resolve it overnight, I need time to think this through'. Luckily I found the forum and Melanie and only then was I certain what I wanted to do.

You'll know when you're ready to commit to a debt solution. Until then remember we're here for you for both support and advice. xx

[scirocco]

Hi C-B. It took me 10 months to come to my decision, although one could argue that is too long and some may not have the same amount of time afforded to me.

My circumstances were always changing and I found it very difficult to understand my position, never mind try and explain it to others.

Whenever I thought I had a solution, I found myself wondering what if......

Eventually I accepted IVA, but just as I was about to commit, my fluid situation again prevented me going forward.

I finally decided that I couldn't continue asking questions of others and then looking for better alternatives. I needed stability and peace of mind so I opted BR. My court hearing is next week.

Bankruptcy is not the easy option it sounds and it may not be plain sailing for me. Things may become bumpy along the way, but at least I finally came to my own decision and I can now plan for the future.

I was assisted greatly by some of the lovely people on here. They didn't give me financial advice and they didn't tell me what I should and shouldn't do. What they gave me was gentle encouragement to do what I thought was right, and because the most had written blogs from their own unique experiences, I found reading those invaluable in that they enabled me to ask questions of the only ones legally permitted to give such advice, the professionals.

As others have said, take your time and look at all your options and alternatives. When you finally make your decision it may not bring instant relief or peace as it brings its own self doubts and problems.

But you will work through these and the fog will lift. You will only know then if that decision was correct for you.

That all seems a bit vague, but I'm sure everyone goes through the thought process that you are currently experiencing. If you do not take professional advice to help you fully explore the potential of every option, then you might always doubt your decision.