Hi, just after some general advice regarding IVAs and lump sum IVAs. I have been in contact with a debt charity who have helped me work out my finances and have said I am better off either going bankrupt or starting an Iva. I owe 22,000 (joint with my husband) to 12 creditors. I am wary of signing up to a 5 year Iva as we have only £110 left after essential bills and my husband has ongoing health problems which have already seen his hours halved at work. My mother in law has said she may be able to borrow us approx 5000 to help pay the debts in one go. I have heard of lump sum IVAs and am not sure how they work. Many thanks
Sorry to hear of your husbands problems and hope his health improves soon.
Speak to one or two more companies, give Andy Davie/Vincent Bond a call (details under the expert link on the left hand side of the page) for some free advice.
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
We are private renting, have a car worth 2000 which is needed for school runs and my husbands work. I have an ongoing personal injury claim that has been going for a year. How will this affect an IVA? Many thanks
Is it possible that you could think of going bankrupt?
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
Usually injury payouts for pain and suffering are allowed to be kept under bankruptcy and IP's tend to apply the same rule to IVA's, but this should be discussed at the outset to avoid any unpleasant surprises.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Our advisor did recommend bankruptcy but my husband is terrified from all the scare story's about bankruptcy, he is worried about people turning up to take things from our house to pay the debts (such as TVs etc) some of the debt is with catalogue company's and he thinks they can come and basically take back things that have been bought (accounts have been running for almost 10 years so I'm pretty sure that is not the case!)
Long gone are the days when they stripped bankrupts bare and put them in the village stocks ! Have a word with Vikki from Vincent Bond, she can explain everything.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Ignore the scare stories - debt collectors and bailiffs won't be able to take goods once the bankruptcy is granted - it's not advertised in the paper anymore and the bankruptcy will be lifted after 12 months. You may have to pay an income payment agreement for three years.
It will cost you £655 to declare bankruptcy but you can pay that in instalments and you don't have to go to court. Forms are filled in online.
Might be something worth considering.
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
Fantastic, you've really helped me out. What is the 3 year payment? How does bankruptcy effect our credit rating after as opposed to an IVA? And can we go bankrupt jointly or would we have to both do it individually? Many thanks
The three year payments are similar to an IVA and BR will still affect your credit rating for the same length of time. You would have to do it separately as far as I am aware.
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
The thing about BR is that it can't fail ! As, with health problems, there is a degree of uncertainty with keeping up ongoing payments, this might be worth adding in to the mix.
If you get a few years into the IVA and can no longer make payments the IVA could fail and you will be back to square one. If you are a year into your payments order and income drops drastically the payments can be renegotiated or stopped with no penalty.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi again and thanks for the replies, have had a lengthy phone conversation today with step change to make sure I make the right decision, the advisor informed me that any claim for personal injury including pain and suffering would be taken by the OR. Is this right? What would happen if I waited for the claims to go through before filing for bankruptcy or IVA. At this stage I don't know amounts or when I will get a payout. Many thanks
