Unsure

[unlucky1]

My total debt is around 40k plus 15k that is not included in my iva.
I am currently 2 months into an iva and am getting depressed about the prospect of not having a holiday for the next 5 years not being able to go to any of my friends weddings birthday parties or even take my girlfriend out to the cinema once in a while! I am now considering bankruptcy as I have read that they are much more lenient with the repayments and they allow you to budget for such eventualities as above is this true? One thing I am concerned about is the fact that some of my debts were accumulated through gambling and am concerned that this will not be looked upon favourably if I go down the bankruptcy route?
Any advice much welcomed!

[MelanieGiles]

Hi unlucky and welcome to the forum

Why have you got debts of £15,000 which are not included in your IVA, and how were these monies borrowed? Were they borrowed pre- or post-IVA?

I am afraid that when you borrow money - the expectation for creditors is that you pay it back. So if these means some sacrifices along the way then so be it! However, it is your life and you can make choices. If you feel that bankruptcy affords you a better option, and that you no longer wish to continue with your IVA, make your IP aware of the situation in the first instance.

Gambling used to be an offence under bankruptcy legislation, but it no longer is - although depending on the extent of your borrowings this could lead to a Bankruptcy Restriction Order or Agreement.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[unlucky1]

sorry the 15k is student loan that apparently couldnt be included as in my iva
I would estimate that around 15k of my debt could be directly attributed to gambling would this be enough to cause big problems?
My understanding was that bankruptcy allows to make a fresh start obviously with some implications and a poor credit rating but i dont ever want to borrow money again so this wont matter!!

[MelanieGiles]

OK - now that makes sense.

With nearly 40% of your debt relating to gambling, I would expect to receive a restriction on your discharge from bankruptcy, and as you would be going bankrupt as a result of a failed IVA, the Trustee will want to understand why you cannot afford the payments any more. I do not feel that you will see much saving on your monthly contributions to be frank!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[unlucky1]

Thanks Melanie,
What does the restriction usually mean or entail?
Thanks

[MelanieGiles]

It means that you will not be discharged from bankruptcy until the restriction concludes - so you cannot get any credit during this period of more than £500.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva experts]

An OR can place a restriction on your bankruptcy for up to 10 years; however keep in mind that this is usually for cases where there has been fraudulent/illegal activity OR if you have been bankrupt before.

Gambling is not fraudulent or illegal so you may possibly be bankrupt for the normal period of 12 months.

Best Regards. IVA Experts

[unlucky1]

I'm thinking that going bankrupt may be better for me then who should i speak to? My IP? Will they be annoyed or try and stop me? after all there work setting up my iva?

[unlucky1]

Can someone also advise me on this
i have just remembered that around 2 years ago i paid a friend of mine about 5k which i owed him! Could this effect me if i went for br?

[MelanieGiles]

I think that it is a shame that you are having these thoughts so soon after having an IVA accepted. Were you advised of all of your options by your IP prior to entering into the arrangement? And what made you choose an IVA over bankruptcy then?

If you feel that bankruptcy is now a better option, tell your IP as soon as possible and you will need to file your own petition at Court at a cost of £485.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk