www.iva.co.uk

Reading through my local papers, it appears that bankrupcy must be on the increase, todays paper where I am has two full pages of individuals going bankrupt, and companies in Liquidation, do the forum members feel that we are yet to see the worse?

Personally I want to pay back some of the money I borrowed, although it appears some people are taking the BR route as a quick fix.

With an IVA can I start rebuilding my Credit rating?? it was only twelve montsh ago that I could borrow any amount I wanted as I had equity in my house, but since my divorce where my ex wife gained the equity, and the loss of my income, I am now credit worthyless, my 16 year old is more solvent than me.

Given the current economic climate, do you feel courts are rushing through BR proceedings, will this impact on IVA proposals??

Bankruptcies and IVAs are both on the increase but the percentage of bankruptcies to IVAs is increasing. I believe that this is due to a number of factors;
1. Lack of awareness of IVAs leads many people into bankruptcy without ever having spoken to an IP.
2. The economic climate is such that many people have lost jobs, overtime, bonuses etc so can only just about survive without paying unsecured creditors so an IVA is not viable.
3. The income and expenditure guidelines being imposed by some creditors are draconian and people are being forced to petition as they could not afford the payments demanded of them by creditors.
4. The property market collapse has made bankruptcy much more attractive to debtors as with little or no equity there is no danger of losing the matrimonial home.

Bankruptcy is often a much better option for a debtor but it is not really an easy option and most people are like you in that they would like to pay back what they can afford within an agreed period. An IVA is not seen much differently to bankruptcy on your credit file and many mortgage lenders do not differentiate between the two. However, in an IVA you do retain complete control and this means a lot especially to those who are self employed.

Hello

I should imagine that BR will increase........for me personally it was NOT a quick fix. I have actually paid back half of everything I owe, it was the interest rates, lack of work for hubby, and prices rising that crippled us. I did apply for an IVA have tried just about everything under the sun and made myself ill doing it.
I cannot comment on if BR will affect IVAs but in either case your credit rating will be shot for 6 years.........and my opinion this is a good thing! I do not want credit ever again and am more than happy to pay cash.

I am sure an expert will be along soon to answer any questions you have.

Take care

1 step

If you remain in your home and can continue to pay mortgage after bankruptcy can you stay. I am considering the Br route but house is up for sale. It could well end up in negative equity. Eg If not and I have $15000 after BR would I then have to pay this to the creditors

If the house is in negative equity and you can afford to pay the mortgage, then you won't normally lose it in bankruptcy.

I may have to go down the BR route as Im now on a 4 day week every two weeks and am struggling in a DMP. My only asset and worry is losing my car, its market value online is between £2400-2900 and is on HP with GE money and pay £150 mnth (still owe £5000 on it though). I work shifts and no chance of public transport (I live in a village 24 miles to work). I believe if a car is worth more than £2500 you could keep it if you pay the remainder of value to the court. But I thought you cannot transfer any asset prior to the BR as the OR would find out about it.

Can I just say BR was NOT a fix quick for us.....we had paid over £12k into the IVA and if it wasn't for an incompetent IP and greedy creditors we would have gladly avoided the BR route!!!!!!!!!!!!!!!!!!![:(!]

BR certainly isn't a quick fix. If my IVA payments hadn't been set too high I would have carried on with it.

Neil, you can transfer assets, but it must be done at full market value and the OR must be informed, with any money made part of your BR estate.

this is the problem you cant repair you credit rating well in a IVA the rule should be changed if had have known it before I stated mine I would of gone bankrupt. you better off going bankrupt thats my opinion easy way out yes but have just seen my IVA has a waste of time.

Chris - I don't agree, going BR is not the easy way out at all.

I totally agree Julie, bankruptcy is not the easy way out. If you have disposable income, then you are still paying back money to your creditors.

As to your credit rating - doesn't matter if you do an IVA or BR, it will still be shot for 6 years and you won't be in a position to repair it until afterwards.

I'm in an IVA, and I don't see that as a waste of time at all.

? Do you have to go to/register in your local Court. I was told yes but when looking on the govt site it did not appear as definite.
? the govt blurb says that you have to give up your bank account I have done this once and now have a basic co op with no cards or cheque book, only an electron. How do you get your pay /wages if you have to give up your account ?

You will have to make your bankruptcy application in your local County Court.

You are not required to give up your bank account, but its ongoing operation can only be guaranteed with the agreement of the bank and your Trustee.

To anyone who thinks BR is the easy way out they need to think again. Yes it meant I didn't have my debts any more, but the stress doesn't go away, and it won't until I make my final IPA payment next year.

The only people who think BR is the easy option are the ones that have never been through it.

How do they work out what you still have to repay?