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I am confused as to whether I should go bankrupt or do an iva. We (husband and I)had a limited company that has now closed with many debts due to the recession. We also have a mountain of personal debts around £50,000. My husband is currently unemployed but we believe he will be in employment by the time an IVA is in place. I am employed part-time but about to lose my job. However, I am able to find freelance work as a writer. What would you suggest we do? We do not like the idea of going bankrupt but I am not sure how an IVA will impact upon our Ltd business debts.

Hi Janet. First of all the only debts to which you will be liable are those that were personally guaranteed. If the company has been liquidated any debts relating to it are effectively gone so the IVAs would only encompass personal debts and the guarantees.

It may be rash to make such a big decision quickly given that your circumstances are volatile and could change quickly over a short period of time. Speak to an IP for advice before you make any decisions.

I agree with Michael - don't rush in.

It wouldn't be impossible to propose an IVA, but there is less chance of it being accepted. It may be more prudent to ask your creditors to freeze charges and interest and make token payments until your income situation is more settled.

Hi
Do you have any property assets ?
Regards

It does not sound as if you are in the right place to present an IVA right now, until certainty resumes to your household income. I would look at a temporary DMP in the meantime, which ought to keep your creditors at bay allowing you to concentrate on the important things like finding jobs.

I suggest you talk to someone - their advice is free and you don't have to take the options made available to you by that advisor.

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