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I'm currently looking at a few options for sorting out the debt mess I'm in. IVA is one of them, but Andy's suggested I should consider Bankruptcy. Obviously that would mean stopping any ambitions on setting up a company until discharge, but there are a few other questions I have.

As I mentioned in my post in the IVA forum, I'm been running up debt for a while, and since May I've had no income - I've basically been living off credit cards. Although I honestly believed things were going to turn around, I have a feeling the OR may not see it that way, decide I was being reckless and go for a BRU. Is this fairly common?

Also, I read elsewhere on this forum that income payment agreements/orders can only be set up during the first year of BR. Is this period extended in the event of a BRU?

Hi there

If you have been borrowing money with no reasonable prospect of repaying it, then this is likely to be viewed as reckless, but whether this will result in a BRU or BRO will be down to the discretion of the OR.

If the OR is going to seek either form of restriction, they do have to be in place before you are discharged.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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Hello chairmanmiow,

This activity could be viewed as reckless by the OR but ultimately it is their decision. Whilst being a member on this forum I have not yet come across a bankruptcy case where the individual has been given BRO. Try not to dwell on the negatives and think about what a great change you are making [:D]

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

Thanks [:)]

In the event of me being given a BRU, does that extend the time the OR has to make an Income Payments Order beyond the standard 12 months?

No, the OR would still have to implement the IPA before your automatic discharge date.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

The difference between a BRU Bankrucptcy restriction undertaking and a BRO Bankruptcy Restriction Order is basically down to whether you accept the OR findings(BRU) or decide to appeal against them (BRO). I recenly had a case where a BRU was overturned on the basis that the debtor had sent a copy of her credit application which indictated that she was unemployed but in fact the agreement sent back the from he creditor put her down as a house wife dispite the fact she had disclosed she was unemployed . My point being that the Court does not always assume it is the debtor at fault !!! . Generaly speaking if you did not gamble , spend extragently , and or do some fraud and genuinely beleived that you were going to be be able to pay it off then you should be able to avoid a BRO/BRU