Would I be in a position to try for an IVA.

[v1cks]

Hope you can help,

I've found I've got myself into a terrible mess with my debt and I'm now getting into the position where I can't cope.

The full amount of my debt is just over £23,500. This is split as follows:

Mbna - £6,710.52
Barclaycard - £5,800
Capital One - £750

Northern Rock, unsecured loan - £10,000

Littlewoods - £260

My monthly income after tax is £1,100
and my monthly outgoings (without my debt) is £807

I live in rented accommodation, have no assets, I do have a car I use for work that is registered in my name but my parents bought this for me (they still have the receipt).

Would I be in a position to try for an IVA. My father says I should go along the bankrupt route as I have no assets they can take from me.

Any help would be much appreciated

[Oliver]

Hello and welcome.

On the face of it you do seem to have the makings of a workable IVA but your Father makes a reasonable point and you should definately take Bankruptcy into consideration.

In Bankruptcy you will definately be economically better off than in an IVA as you will only likely pay for a maximum of 3 years instead of 5 years in an IVA, and also at monthly payments which will potentially be lower than those calculated in your IVA.

What are your feelings on Bankruptcy? Is there anything in particular that concerns you?

[Adam Davies]

Hi
You can certainly declare bankruptcy but have a look into an IVA and DMP first.
What disposible income do you have without paying any unsecured debts ?
Regards

[v1cks]

Thanks for your advice.

For my disposable income i'm looking at £250

I guess my main concerns in bankruptcy would be how it would effect my current rental situation. I currently rent from a letting agent representing a private landlord on a month by month basis, I'm not sure if there is anything in my contract regarding bankruptcy, I will have to check this out. Also if I find myself having to find alternative accommodation I'm worried how difficult this would be due to credit checks etc...

Also would there be the possibility of losing my car? as I said its registered to me but my parents bought it for me.

Finally would it have any impact on my current employment and how would my wages be paid.

Is this something I would do myself by contacting the courts? Or would it be preferable to get some help?

[Reviva UK]

Hi V1cks
Welcome to the forum.

Seems on the face of it you have 3 options ( IVA / DMP or Bankruptcy) .

There are some challenges with rental properties so you would need to read your agreement carefully to ensure it is not a problem. Quite often the Br clause is put in to protect the Landlord BUT provided they are getting the rent most are not remptely bothered.

However should you decide to move to another property it could be a problem as many landlords ( certainly ones managed by agents) would be looking for 3 - 6 months advance payments to protect their position.

If the value of the car is sum£2k and you need it for work then it would probably be fine in Br, certainly OK in an IVA and DMP.

Employment - depends what you do for a job - some jobs legally prohibit folks that are currently in bankruptcy ( these include being and MP, Solicitor, Accountant, holding public office etc ) . Most employers now recognise that after a debt solution is implemented the employee is much less stressed and more likely to be a great asset to the company.

As with IVA's and debt management there are companies that will guide you through the Br process however the recommended course of action would be to speak directly to one of the professional experts on the forum and ask them to explain each of the 3 solutions and how they impact on your position.

With this information you would be able to make an informed decision.

Hope it helps