www.iva.co.uk

Hi all,
I am trying to decide between IVA and BR. I have been considering BR for some time, as I have no assets, and for my level of debt, is a quicker solution. However, I understand that in an IVA I would be allowed a car on HP, which appeals more than the £2k car allowance in BR (I need a reliable and tidy car as I work in sales). However, if I were to get finance from a company like Dunctons, for say £300 a month, it would only leave me about £250 to pay towards an IVA, and I wonder if this is not enough 'pence in the pound' return considering my debts are heading for £60k! Any thoughts appreciated.

Hi, and welcome to the forum.

What amount of debt do you have? BR could be a solution but I do recommend that you seek some professional advice.

Visit www.iva.com for a list of companies and reviews and give one or two a ring for free and impartial advice.

Hi,

You can have a lease car under BR too..I think it depends on individual circumstance.

Also, just make sure BR doesn't affect your career - I wouldn't have thought it would,but check your contract of employment to be sure.

IVA's have been accepted with a very low return - take a look at the link Jan has provided and contact a few companies/

I think those figures would be fine for an IVA - but best if you take professional advice from an insolvency practitioner who can give you detailed advice on an unbaised basis about all of the debt solutions available to you.

Really Melanie? I was thinking it would be too low a return for the creditors. I thought you'd at least have to put forward 25p in the pound. My debts are as follows:- (estimated)

northern rock repo shortfall (joint with ex) £20k
northern rock unsec loan £25000 (joint with ex)
first direct unsec loan £18500
car lease shortfall £7500
car hp shortfall £5000
various small debts (phones, utilities etc) £1000

seems an awful lot for a £250 a month IVA!

I'd be happy to put that sort of offer forward if I were acting for you. Yes it is a bit on the low side, but far better than bankruptcy proceedings where creditors would probably get nothing at all back.

In your first post you mentioned debts of £60k - but adding them all up it comes to £77,000. Is this correct, and does the car shortfall represent what is owed on the vehicle you are still using?

The 60k was because I often half my joint debts when quoting them, although I know that I am liable for the full amounts. I suppose if NR were to get something from my ex partner too they would get a greater return than my IVA alone. I don't know anything of the whereabouts and circumstances of my ex and I don't know if she has been paying them anything, or even if she is in an IVA or BR herself. It's strange, after 2 years of dodging letters and moving house, NR have made no effort to find me, and they are my biggest creditor...whereas small companies who I owe £200 to have traced me at every juncture!

As for the car, the £5k is for a car I currently have but British credit trust have terminated the agreement, they just aren't hurrying with the reposession (I am saying 5k, the final balance from Bct is 10k, but the car is worth 5-6 and the proceeds of it's sale would come off that balance) The reason I stopped paying for this car is that I was almost certain I would go down the BR route, so I stopped paying so I could save up for a car worth 2k, which I understand to be the OR guideline (I hence bought a car for 2k which is awful and breaks down frequently! So I am driving the old HP car until it gets reposessed!)

Remember that the ex will get chased for any joints debts included in your IVA.

Well I still feel that an IVA is an option for you, but bankruptcy should be given serious consideration as well.