www.iva.co.uk

due to the current amount of insolvencies does anyone think that iva or bankruptcy will be made harder to get or even punishments involved like prison .im still undecided what to do but am worried longer i leave it the harder it might be to get.thanks

Absolutely not. Why should people be punished for having debts that they cannot afford to pay. Over 80% of financial difficulties arise as a result of unforseen personal circumtances such as redundancy, illness or marital break up.

I think that it should be made more difficult to get the credit in the first place, if we are to reduce insolvencies - but I actually do not see that happening, and the more banks lend the more they have to be prepared to write off.

No prison and maybe it will get easier with the introduction of the SIVAs next year. Bankruptcy process may get harder though. I'm sure the experts will know more.

debtors prison was abolished a long time ago. so dont worry, get as much information as possible to enable you to make the right choice in your circumstances. There are a few professional experts on this site who would be happy to discuss options with you.

Most of us struggle on for a while before we stop or are stopped and have to look for help. Its not a very nice place to be, there are people who will understand that and be more than willing to advise you.

Good luck and take care now.

Hi
There are "won't" pays and "can't" pays.
We are all in the can't pay catagory and banks etc need to rely on the integrity of IPs to put forward genuine cases without too much questioning.
Recent figures suggest that banks are still making the IVA route difficult and many people are opting for bankruptcy.
I am sure there will be a swing back to IVAs in the near future.
Regards

Ever the optimist Andy!!!

whats a SIVA?

It will be a more simplified version of an IVA. Instead of 75% of your creditors having to accept for it to be accepted, it will only be 50%. So and IVA will be easier to get.

Not sure when it will be coming in, as it has been talked about for a long time.

I believe also that there will be no annual reviews with a SIVA.

Even better!

I dont think prison is an option but I do strongly believe that it will become much harder for anyone regardless of history to get credit in the future!!

I dont think thats a bad thing though.

No, debtors prison went out of the window years ago! I think they'd have a problem with overcrowding if not![:D]

The SIVA is going to be called the Fast Track Individual Voluntary Arrangement and hopefully will be available from April 2009. Simple majority and crediors are given no options either accept or decline. No modifications. No Annual Reports and wilkl be available to debtor's with debts upto £75,000.

IVA's with the release of latest insolvency statistics will rise again.

Take appropriate advice and seek views of one or two IP's. Visit www.iva.com and see reviews on many practitioners.

Don't worry you won't be thrown into jail!

There is a whole raft of new legislation in the pipeline designed to make debt relief simpler and cheaper.

So apart from the revised IVA's mentioned above by David we will also have revised AO's, DRO's ERO's and regulated DMPS.

So although there will be more options for people, the choice of which to go for will actually be more complex.

As someone who occasionally works in prisons they are already over crowed now the thought of of how many extra people there would be if debtors were imprisoned I shudder to think.

I think you would only be imprisoned for debt if you had committed a serous crime--Thank goodness

Jan




Jan