What should I do next? Bankruptcy or IVA?

[ianw]

I owe £25k on student loans, credit cards and other personal loans. I also owe a years worth of mortgage payments (12 * £408). What should I do next? Bankruptcy or IVA?

[chris.g]

Hi, I don't think you can include student loans in bankruptcy but I'm sure someone will correct me if I'm wrong. You need personal advice on your situation, everything needs to be taken into account and every option needs to be explained to you. Why not contact Melanie Giles to discuss it further? Good Luck

[ianmillington]

Hi

If you go bankrupt, you will still owe your student loan as it will not be discharged by the bankruptcy.

If you do an IVA then the student loan wil become part of the IVA. Whether that is do-able depends on a number of factors, particularly:

1. What percentage of the debts is represented by the student loan company (they will be prepared to accept IVA proposals but demand a high dividend)?
2. Do you have a surplus income to enable you to make payments into the IVA?
3. I note you have a mortgage - do I read it right, you have 12 months arrears? Can you supply details of the property i.e its approximate value and the amount outstanding on the mortgage?
4. Do you have a partner/any dependants? If so do they make any contribution towards the budget?

Ian

Ian

[MelanieGiles]

The key to this is finding out who much the aggregate debts are. As Ian mentions the Student Loan Company require a very high dividend - I have had them quote 90p in the £ to me before noew.

Are the student loans actually with the Student Loans Company or other banks?

[introuble]

What would be a reasonable allowable percentage to offer on an iva? I know all cases differ, but just to get a rough idea?

[ianmillington]

Hi introuble

The whole thing is based, like Bankruptcy, on "can pay, will pay".

If you were able to ask anyone to be tied down to percentages you would get such a wide range that it wouldn't be much use to you. I don't think I can.

It depends entirely on whether you have any assets, how much you earn and how much you and your family reasonably need to live on.

Ian