Hi i have been advised by CAB to file for bankruptcy as I've no income and no assets I can't afford to pay the minimum on my bills,a family member has offered to pay a lump sum towards my debts is this a good idea and is iva similar to bankruptcy ?i don't know anything about iva so don't know if I should go for that or bankruptcy .how long does iva lump sum process take?many thanks
The effects are pretty similar on your credit file whether bankruptcy or IVA. Both have their pros and cons and while I would not second guess the CAB you could get a second opinion. With no assets and no income bankruptcy does seem obvious which is why a lump sum IVA would be likely grabbed by your creditors.
The IVA can last as little as 28 days but usually a while longer than that.
Hi thank you for the replies I owe 23000, if I go forward with IVA lump sum how much should I offer?family member is happy to give me 8/9000 could i possibly offer less then that,what do you think?
I would suggest you have a chat with a couple of firms, but, my feeling is that, if presented properly £8000 is better than they would get in BR.
That said, if you have no assets or income, then BR will only cost you £750.
Are you looking for work, or intending to do so in the near future ? If so, are you in ( or likely to be) an occupation which could be badly affected by BR? If not, then BR would certainly be worth looking into in more depth.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You could possibly offer less as in bankruptcy creditors would get nothing anyway. However some IP firms may not be able to do it for much lower as it could potentially be uneconomic. The fees are usually a percentage of the 'pot' so once it drops below a certain level the proposal becomes lossmaking.
We have done one off IVAs for as little as £6k and they have been acceptable to creditors. Bear in mind however that this money may need to be repaid and you appear to have little at all to be concerned about with bankruptcy.
That sort of offer would present a very good return in my bookEmz94, and I have put forward a lot of similar ones over the last year which have been successfully accepted.
Do give serious consideration to bankruptcy, however, as whilst some people might view this as very harsh, and only be prepared to consider it as a last resort, others may view it as the ultimate and quickest fresh start.
A chat directly with an insolvency practitioner would not cost you anything, and you would be able to get a much better and in depth run through of all of the options currently available to you.
Is the offer of funding to be a gift, or a loan which you will be required to repay at some stage?
Hi Melanie I def want to try IVA lump sum ,the lump sum is a gift from family so I won't need to pay back ,I don't have any assets or anything but my partner owns a house he purchased before I moved in with him I've never contributed anything towards the property will anything happen to his house if I go ahead with IVA lump sum?and what documents will I need for the process?
