Hello everybody, this is my first time posting on this site, but it was very helpful when deciding to go into an IVA last year. My question/query is, I'm currently in an IVA - since August 2008 - and have recently been made redundant. All my payments are up to date and i can make my next payment which is in two weeks time, but i'm wondering, should I/can I now consider bankruptcy? I have an interview for another job lined up and have already spoken to my local Job Centre Plus about claiming the dole, but i was wondering if bankruptcy would be a better option than asking for a payment break from my IVA. I did want to pay my creditors back as much as possible, but the situation i find myself in, leads me to think bankruptcy would be the best course of action if i can take it. I still live at home with my parents so have no assets that i would lose, and i am just wondering if bankruptcy is an option.
Only you can decide whether bankruptcy is a better option for you than the existing IVA. If you are going for another job, wouldn't it be better to wait for the outcome of the interview before finally deciding?
What was is that drew you to an IVA over bankruptcy last year when you were considering your options? And apart from the redundancy, has anything change in your circumstances which may also now be affecting your decision making process?
Well the main reason i chose the IVA was the stigma i'd attached to bankruptcy from what i've heard all through my life. Second, as i stated, i wanted to pay back my creditors as much as i possibly could. Even though, as im sure like many other people, they threw money (in the form of credit) at me, it was ultimately my decision to spend it so i do feel a responsibility to pay them back. But now that i've been made redundant, i'm wondering if i can... for want of a better phrase "take advantage" of this situation, and clear my debts quicker through bankruptcy, rather than seeing out my IVA through the next 4 years. From what i've read, bankruptcy will only last 3-12 months and i must admit, that is sounding more and more appealing especially seen as i could possibly have no job for the forseable future.
Bankruptcy still has a stigma attached to it - but not as bad as it was and you'll be discharged within a year. If you are in receipt of an income you would be expected to contribute a proportion - Income Payments Order for up to 3 years - pre-supposing you get a job.
Whether because of redundancy is the trigger for going bankrupt is all well and good - but as Melanie stated it is up to you to decide.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
