IVA vs Bankruptcy

[phill]

I cant help thinking that it would be better for me to go bankrupt rather than really struggle on for the next 5 years. If i went bankrupt from what i have read the terms only normally last for a year and after that i would be free of debt. I understand that i wont beable to get any credit for the next 5 years but this isnt possible with an iva anyway in the mean time i could be saving rather than paying off my iva. I also think that everyone is pushing iva's as this makes them more money than bankruptcy? Anyone got any thoughts?

[freelili]

Hi
an iva is just a step away from bankruptcy, many people do not want to go bankrupt because of losing their home. Also some jobs are affected. If you have nothing to lose by going BR than that is ok. Also your name appears in the London gazzette and your local paper. I was going to go BR in January, I had no assets to lose and my profession wasnt affeted. My circumstances changed.

LILY

[Skippy]

Hi Phill and welcome to the forum.

It all really depends on your circumstances:

Have you any assets (e.g. property, expensive car)?
Do you mind having your name in the local paper?
Are you working?

I do understand that if you are made bankrupt the court can order that you make payments from your disposable income fro 3 years - I was told this would happen to me.

Regarding IVAs being pushed as they make more money, sadly in some cases this is true. There are a lot of unscrupulous companies out there who are trying to make money from vulnerable people.

Whatever yuo decide to do, I would say contact a company from this site, and before you make a final decision contact a couple more companies.

Good luck and let us know how you get on.


Four down, fifty six to go until freedom!

[phill]

Thanks To you both,
The answers to your questions skippy are no, no, yes I am a teacher could this effect my job?
I've spoke to many companies from this website and they have all said to go for an iva which i am about to make my 1st payment for, i'm just unsure. Who are the best people to speak to re going BR?

[Skippy]

You would need to check your contract regarding bankruptcy - I believe that some public sector jobs can be affected by bankruptcy. Your IP should be able to advise you - they will be the ones petitioning for your bankruptcy should your IVA fail.

Sorry to be vague, hopefully one of the experts will be able to give you more advice soon.

Four down, fifty six to go until freedom!

[freelili]

HI PHIL

You should check your C of E as skippy said
Also you oould have a disrete work with HR
I phoned my governing body (NHSAPH) They said it was OK, its usually people in the armed forces, finacial, public sector, legal etc that are affected.

Try this site, they are really good.

www.myvesta.org.uk
you can chat online to find out what you need to know

Good luck with everything, Keep posting and let us know

LILY

[finebridge]

Hi Phill

Saving money whilst bankrupt may not be possible, as the Official Receiver is likely to look towards an Income Payment Agreement, meaning any disposable income is paid into your bankruptcy estate for three years. Even though you would most probably be discharged from bankruptcy after 12 months, you would still be expected to pay the IPA for three years, as Skippy has stated.

I do not believe bankruptcy would affect your job, but I would follow freelili's advice.

I'm sure any of the experts on this site would give you impartial advice regarding bankruptcy.

Kind regards
Brian Baker


Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[MelanieGiles]

Phil

Assuming that you do have some diposable income to offer to creditors on a monthly basis, the key motivator here for your decision making process should be - "is it better for me to go bankrupt, where I may not be required to make payments to my creditors", or "do I feel morally obliged to offer to pay something for the money I have borrowed".

Only you can answer that question, and you should do so truthfully - to be true to yourself as, after all, it is your future and therefore your choice.

Insolvency practitioners generally do not offer recommendations, we advise on options and the implication of each option based upon an individual client's specific set of circumstances. I would rarely tell someone that bankruptcy is better or that they should do an IVA. My job is to ensure that clients are properly advised on all of the options available, and that they are able to make a reasoned choice with the benefit of that newly found knowledge.

Despite some current trend of thought amongst the banks and the media, neither an IVA nor a bankruptcy is an easy option. Both can affect your life in differing ways, and both procedures will have implications for you into the future. Take time before you arrive at your decision, and get as much advice as you can in the meantime.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[freelili]

Hi Phil

I forgot to mention the car if you have one, I found that by going down the IVA route it wouldnt be affected but in bankruptcy mine might have been nabbed,(although my circumstances were taken into account) so be sure as Melanie said before you make the decision, I also found that the allowance in BR to live on is a little more generous. Personally and this is just my opinion, I would'nt worry about how much the creditors get back at the end of the day, being insolvent is a dark and lonley place to be, I dont think many people would choose to go there twice, I certainly wouldnt

I hope that you find the right solution for you

Good luck

LILY

[neverending]

Phill
Stop and think before parting with any money.You state that you are about to pay your first payment,why ? Your IVA has not even commenced and you are still undecided.Speak to two or three more companies on this site before deciding and indeed paying.
Regards