www.iva.co.uk

Hi,

I've been in an IVA for a few months now but i wish i went bankrupt, as i have no assets and none of the debt is student loans or child support. I am getting a pay rise in a few months and this will be backdated for the last 3 years. I think i will have to give half of the lump sum to the IVA plus half of the pay rise for future monthly payments, is that right? If i went bankrupt would i have to give all this lump sum towards the bankruptcy? Also what would make the payments under bankruptcy last for 3 years as a pose to 1 year?

Many Thanks

Hi benwar and welcome to the forum

No-one can really advise you whether it is better for you to go bankrupt now, or tell you how the Official Receiver is likely to review your income and expenditure.

Reading between the lines with regard to your post, it seems that you are aggrieved at having to share your payrise with yorur creditors? If this is the case, then an IVA is probably not the right solution for you, and you will probably grow to resent it in the long-term.

The payments in bankruptcy last for 3 years because that is what the law states.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Thanks for the reply Melanie. Tbh i'm worried that i will end up paying more into my iva than my original debt, which after all the stress of it would be pretty gutting! I have spoke to people recently who claim the bankruptcy payments last for a year at the most. Is this only for people with no job or a low income?

The other thing is i would love to go travelling some time, do i have to wait 5 years for the iva to finish or is there any way around this? Now that i think about it 'you only live once' so is the embarassment of bankruptcy that bad after all. Thank you

Hi
Bankruptcy will last a year,sometimes less,but the income order[if made] will last three years.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

The only time that an income payments order would be for less than 3 years is when it is a "tax" order - which only lasts until the end of the current tax year, and pays over the equivalent of what would be deducted from you salary for PAYE and NIC. In your case, as you appear to have disposable income, this is not likely to be relevant.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

benwar, I had my OR interview yesterday, and I was advised that the OR will take a percentage of any bonus, windfall etc, and also of any salary increases. To be honest, this seems only fair to me, as the OR will allow you basic expenditure, plus you get to keep a percentage of your disposable income. Good luck, whichever choice you make. D.