www.iva.co.uk

Thinking of entering a iva, but been told bankruptcy is best option,owe the tax man 20k advice please need to make my mind up asap, what are plus and negatives in a iva/bankruptcy

Hi and welcome.

Do you have any other debts than to HMRC? Do you have any assets at all such as a house that could be at risk if you went bankrupt?

I would speak to an expert. Visit www.iva.com for a list of companies and reviews and give one or two a ring for some free and impartial advice.

Who offered the advice that bankruptcy was your best option?

What other debts do you have?

Paul

I would beware anyone telling you what they feel the best option for you is. It is important to understand the advantages, disadvantages and implications of all the available debt solutions before you consider jumping into one. An insolvency practitioner will be able to properly advise you on all of these.

Do you have any assets of material value, or the ability to make monthly repayments from your disposable income?

i have no assets at all, i own a home but it's got no equity, it's also got a secured loan against it

Beano if you voluntarily surrender your home it goes on file for 12 years minimum and another poster was informed chances of getting a future mortgage is virtually nil so take that into consideration if you did decide on the bankruptcy route.

You are better off going to www.iva.com and phoning a couple of companies from there, Mel who posted above is on there and has great reviews on here. You tell them all the debt you owe including the mortgage and secured loan and all unsecured debts, council tax , tax arrears, bills whatever is outstanding and also what you earn and they can do an income and expenditure sheet and then and only then be in the best position to see what insolvency solution is right for you based on your personal circumstances.

Ho Beano - welcome to the forum - it is up to you to decide what is the best option for you once you have had all options fully explained and your circumstances properly assessed to understand how each one would impact you.

It is such an important decision you need to get proper help and not be rushed into anything.

Regards,

It is not necessarily done after five years - depends on creditors, assets and DI. Even if your home is in negative equity now the OR will keep an interest in it for 2 years and three months so it is by no means safe.

How many bank accounts are you allowed to have, and if more than one do you show your IP the one with all the transaction in and keep the other one on the side

You can have as many bank accounts as you like. Most people use one for day to day transactions and another one to put savings in.

Your IP will only be interested in the one with your usual income and outgoings, not a savings account.

Your IP may not want to see bank statements.

I was also advised to go bankrupt as we do not have any assets. However I wanted to repay as much of the debt as I possibly could, after considering the options we decided on an interlocking IVA and are happy with our decision.

You also need to consider your job and future career, as you may have to declare if you go/have been BR. Likewise, insurance can be affected as some companies ask re: BR.

The decision is a huge one and all aspects of your personal circumstances need to be considered. Speaking to experts as advised is essential.

Good luck and please keep us updated.

hi beano, like julie says weigh up all the pros and cons. take a step back and think it all over and contact an ip for advice. Has to be your decision. I too was in your position once and its a hard choice . Choose whats best for you. I gave up my house and the secured loan was added onto my iva. The house was sold a at 30 thousand less than its value so that was added on to my iva also. You may be able to stay in your home and get an iva. Pros and cons for both br and an iva..A professional is best to help you. good luck,

Feel alot better with myself after speaking to Keith from Vincent Bond,very helpfull. The last people i spoke to were demanding £200 payment from me to get the ball rolling, then a further £200 the month after then all the rest of the payments would go to my IP( i didn't come on a banana boat).Hopefully i can get this IVA up and running sooner than later and my new life can begin not worrying about letters from the postman coming from the door.

Thanks Keith

Glad you're feeling better, things should start moving now.