I have read a lot of people on the forum who have taken the Bankruptcy Route to solving all of there financial problems and Good Luck to Those who Have.
Even though i don't have any assets such as a Mortgage or top of the Range Car i still feel it is my duty to pay things back in an IVA.
Why do people opt for Bankruptcy if they have no assets and what is the advantage of someone paying back a proportion of the debt back over 5 years via an IVA .
What are the advantages of someone like myself paying back via an IVA instead of going Bankrupt.
It is very much a personal thing Andrew - there is no real financial advantage for any person who has no assets in entering into an IVA rather than a bankruptcy - but perhaps there is an enormous moral advantage to feeling that you are paying something towards the money that was borrowed in good faith.
And of course some people do pay something back in BR, only it is for 3 years instead of 5.
Other people would like to take the IVA route, but don't have enough disposable income to be able to do so.
It's down to personal choice, or sometimes circumstances dictate.
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
Some people also choose an IVA over bankruptcy because they can't stand the thought of it being advertised in the local press (though the law is due to change on this).
Everyone has their own reason for choosing an IVA over bankruptcy. One of my clients felt that it was part of his rehabilitation from his gambling addiction.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
How is the law changing Elizabeth? Will IVA's be put in the paper now, or are they stopping publishing bankruptcy?
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
I don't think that the proposed law changes relate to the non-advertising of the bankruptcy Liz, I think they relate to the routine advertising of statutory notices such as notice of intended dividends and final meetings etc.
Hi
I think we would all be surprised how many people are put off bankruptcy by the thought of an advert in the local paper. I know that I was
If, and as Melanie states it is unlikely, the advert is abolished then I'm sure that there would be far more bankruptcies taken out than IVAs/DMPs
Being advertised in the local press wouldn't bother me as it is only a very small print and there are most probably 1000,s of people with my name anyway.
The slight disagreement i have with Kallis there is that she says that under BR you are paying something back over 3 years instead of 5 , but this is NOT! as much as you would in an IVA.
I think there should be some credit (pardon the pun) Given to those that are paying back THROUGH an IVA instead of going Bankrupt, we are paying for 5 years instead of 3 ESPECIALLY those that have no assets of such and who should be recognised.
I was presented with option of bankruptcy and IVA and proceeded with the latter is I work in the financial servcies industry. I have no assets, car etc and live with my parents so probably could have gone bankrupt but then that wouldn't be permitted with my current job. No regrets however - I'm just over two years in IVA and am getting there.
Last payment made on 1st Nov 2011. Happy to be debt free!
Andrew, as I've said before everything seems very cut and dried for you. I went BR, and while I accept that I am paying back nowhere near as much as someone in an IVA, I am paying back as much as I can afford.
I respect anyone who is in an IVA, but I don't feel it's fair to judge people who have gone bankrupt.
Andrew, I never said people were paying back as much as in an IVA, I just said they would be paying something back. I am sure that the majority of them wish it could be more, preferably the whole lot, as I do, but for some people that's just not possible.
I am glad your IVA is working out ok for you, as mine is for me. I would never knock anyone who goes bankrupt, there but for the grace of god is what I say.
I hope that people reading this forum for the first time do not think that we judge people harshly who opt for bankruptcy - that is NOT the case. We are each dealing with our debts in the way that is best for us.
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
As you say Andrew there is absolutely no financial benefit in doing an IVA over BR other then your job not being effected or the stigma attached, I considered BR but as previously said I wanted to pay back as much of the money I borrowed in good faith, however I think like skippy some just don't have the disposable income to make an IVA viable & so are forced down the BR route.
Not sure you can recognise in any way someone whom is paying back only a percentage of their debt in an IVA over BR, it would be like rewarding the not so naughty boy/girl!
I desperately wanted to do an IVA, however as my hubby is up to date with creditors, owns his own business and couldnt guarantee what wages he actually earns (especially at the moment), that i had no other option.
Please believe me when i say it really is not the easy way out - i still feel more or less the same as i did pre BR to be honest with you. Im always on the verge of crying, nervous, constantly worrying, and the unbelievable amount of guilt i feel for not being able to afford to pay all my debt back is overwhelming. Im down most of the time and the only thing that keeps me going is the children.
People keep telling me that i should have nothing to worry about, but i would love for them to understand how i actually feel.
Please don't beat yourself up about it. You have dealt with your debts the only way you could.
I think it takes courage to go bankrupt. I know you would like to pay back all of your debts, most of us would, but for some it is not an option.
Keep your chin up Jenny, remember that we are all here for you with support anytime you like.
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
I agree with Kallis Jenny, you did what you had to do in the circumstances. I don't think that BR would be the first choice for anyone, but some of us have no choice.
Please don't feel bad about being BR, you did all you could to pay your debts back, and as Kallis says, we're all here to support you xxx
