I am currently oweing approx £50,000 to 4 credit cards and a bank loan. i have no assets apart from a £2000 car and a 42" TV worth around £300.
I am 32yrs old and living with my eldery parents. Am currently unemployed on £62pw allowance but looking for work, i tend to earn around £900-£1000 after tax.
With doing some browsing on the net i have come to the conclusion that either an IVA or a bankruptcy would be my best option. So far i have written to my creditors with an income/outgoing expenditure plan and awaiting decision if i can contribute £5 per month for the next 3 months.
I know the effects a bankruptcy can have i.e name in press, credit history but if i can have £50,000 written off then am not too bothered.
Just wanted to know what effect it would have on my parents who are in their 70's i.e repossions of their belongings. i dont mind creditors taking all of my stuff once bankrupt but how would they know whats mine and whats my parents ?
If it effects my parents then i'd might be better off moving into a bedsit and creditors can chase me there and take whatever.
Other option is IVA, if i get any job paying £900pm i could probably contribute about £250-£300 a month for 5 years writing off approx 65% of the debt.
If you are not bothered about repaying your creditors, then bankruptcy is likely to be the best option for you - especially as you currently have no income to fund IVA payments.
It will not affect your parents at all, and bankruptcy does not actually extend to personal domestic items, so no one is going to come round to your house to make an inventory.
If you do get a job, and IVA then may well become an option, but you have to be committed and want to do it to make it really work.
