www.iva.co.uk

Hi there

I am in the final stages of my IVA, just waiting for the Ip to set a creditors meeting date, however, I am now thinking that, I should have chosen the bankrupcy option after reading that your credit file doesnt distinguish between an IVA and Bankrupcy, I thought it would be much worse for Bankrupcy and its not, which is the main reason I chose the IVA. I am going to struggle paying back the IVA for 5 years, I can do it but its not going to be a very good quality of living, and without wanting to sound like a cop out, should I have chose bankrupcy? I realise that you still have to make monthly payments, I own a small cheap car and have no house so theres no problem there, yes it will go in the papers but im doubting not that many people would pick up on it.
But also, at this point, can I change my mind? Has anyone else done this? Your advice would be greatly appreciated, thanks

Hi Gemma and welcome.

If you have not set up your IVA, you can stop it and go for bankruptcy if you wish. It will cost you £495.

As for the IVA, we all have to cut back on stuff to pay it, it is never going to be an easy ride and most of us struggle at some point or other.

Your credit file will be shot for 6 years either way.

You need to have a good think and decide which is the best option for you. Perhaps have a chat with your IP and tell them what you are thinking of doing. You will need to tell your IP anyway if you go br.

thanks Jan, I guess what really shocked me was out of the 15k I pay back, only 9k goes on the debt the rest is too the solicitors, I cant help but think that has something to do with an IVA being advised ahead of BR, and it surprised to me to think im not really paying back that much of my debt!!

What is your total debt and who is preparing your IVA? Those fees do seem a bit excessive.

Hey Gemma, welcome to the forum. Can't really add anything to what Kallis has said. Make sure you carefully consider both options and also consider a debt management plan before you sign anything. Talk to your IP, they are there to help you. Good luck. X

I forgot about the debt management Viki.

Depending on what Gemma's monthly payment, that might be the best option, her debt, on first look, doesn't lookt to be excessively high.

If you already recognise that it will be a struggle to pay the IVA payments, then this route is definately not for you and you should take time to reconsider the other options. IVAs are not meant to take one set of debt problems and replace them with others.