not sure i've taken the best option

[jamesy1]

Hi all, just wanted some advice. I've just entered into an IVA, but after studying some of the paperwork, i'm really not sure i've taken the best option. I owed £36000 in unsecurred debt. I currently earn around £1000 a month, and I live with my folks. I have to pay £362 to the IVA, £250 a month rent to my parents and thats not including food. I spend around another £100 and this, and I have other bills that come to between £100 and £200, so i'm coming out with around £100 a month to live on.

As im sure you will all agree, this isnt enough. I work hard every month to try to earn a bonus, but knowing now all my hard workk i put in will only reward me with half of my bouns!!!! My question is with regard to declaring bankrupcy. As I do not own a property, how will bankruptcy affect me? Will they take any possesions I have?

[debtfreesusie67]

hi jamesy1 welcome to the forum. I don't have the answer to your question I'm sorry but an expert will be along shortly

[Lisa2009]

Hi jamesy and welcome to the forum.

An IVA will take up all your disposable income but Bankruptcy will take slightly less.

Your belongings will be safe. The OR is only interested in things of significant value and as you are not a homeowner i would say your pretty safe.
If you drive an expensive car, you will probable be asked to sell it and buy a cheaper one.

[plasticdaft]

I wish I had £100 a month to live on(and thats split between the wife and son as well).

[chardonnay]

Hi Jamesy,
Again welcome to the forum. You're not the only one who questions their judgement on which solution they chose. The experts will answer you soon and give excellent advice - as will the others with experience. An IVA is blooming hard but a personal choice - I don't know if BR would be easier (I've had similar thoughts, but am waiting to give my IVA a chance then at least I've done my best in my mind). I'm slowly finding solutions to small problems, which seemed huge to start with and this site has helped soooo much.
Chin up and have faith in yourself and your judgement,
Hugs,
Chardonnay

[Viki.W]

Hey Jamesy, welcome to the forum. Have you actually had your creditors meeting yet or are you just at the initial stages? Viki X

[ianmillington]

A sensible way to look at an IVA is as a compromise between debtor and creditors that no-one is ecstatic about but both sides can live with. A very strict budget is a given I am afraid.

Some self analysis is recommended. There are many reasons someone may choose to do an IVA over bankruptcy but in the current climate more disposable income is not one of them. If that is the only criteria then bankruptcy may well be the correct option for you.

Think back though, why did you enter into the IVA to begin with? Are those factors not relevant any more, and if so, why not? What, for example, do you do for a living? Are you on a career path that will be marred by bankruptcy? Do your parents know you are in an IVA? If not, then how do you think they will react when you go bankrupt?

If none of those criteria apply, and you have no assets of value (well pointed out about the car Mrs S!) then you may well be in the wrong solution for you.

Talk this through with your Supervisor though and see what he or she has to say.

Ian