Hello sc and welcome to the forum.
Could you tell me how much your disposable income is?
Bankruptcy is one way of dealing with debts that you cannot pay. Bankruptcy proceedings eventually free you from overwhelming debts. It lasts for twelve months, after which time you can make a fresh start.
The effects of Bankruptcy:
You will have to report to the Official Receiver and provide him with details of your financial affairs
The Official Receiver will effectively own all your assets and look to realise their value for the benefit of creditors
You will usually have to close your bank account
You are unable to obtain credit exceeding £500 without disclosing your bankruptcy
The Bankruptcy Order is registered with credit reference agencies for at least six years
Your employment may be affected depending upon what job you do
You cannot be a company director or hold public office
An Individual Voluntary Arrangement (IVA) is an agreement between you and your creditors whereby you make funds available for distribution between the creditors bound by the agreement. This usually involves making one monthly payment out of your income for a set period of time and, if you have any assets such as equity in your property, endowment policies etc you may have to make some of this available to creditors as well.
Where contributions from income are being made, IVA's are generally expected to be for a period longer than that in bankruptcy, i.e 5 years as opposed to 3 years.
Kind regards,
Julia
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www.supersonicsquirrel.net