Should I declare bankruptcy

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neil111
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by neil111 » Tue Apr 10, 2018 7:16 am
HI I AM CURRENTLY PAYING 100 PER MONTH TO MY IVA WHICH I STARTED PAYING LAT SEPTEMBER I AM DISABLED AND RECIEVING PIP I WOULD LIKE TO SPEAK TO SOMEONE ABOUT DECLARING MYSELF BANKRUPT AS IT WOULD HELP ME WITH MY MONEY SITUATION AS I HAVE TO PAY OUT ON DIRECT DEBITS WHICH DOES NOT LEAVES ME HARDLY ANY MONEY LEFT TO LIVE ON AT THE END OF EACH MONTH SO I WOULD LIKE TO DISCUSS MY SITUATION WITH SOMEONE PLEASE TO FIND OUT WHAT WOULD BE THE BEST OPTION FOR ME
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kallis3
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by kallis3 » Tue Apr 10, 2018 7:47 am
You can declare yourself bankrupt by letting your IVA fail (miss 3 payments) but bankruptcy fees are high and must be paid upfront though you can pay by instalments. Speak to your IP first and see if there is anything they can do to help you.
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Lisa Thomas
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by Lisa Thomas » Tue Apr 10, 2018 8:24 am
We cannot say whether Bankruptcy is the right option for you without knowing a lot more about your financial situation.

Your best bet is to initially speak to your Supervisor.

More on bankruptcy here:

https://youtu.be/mAkQsVSCnqo

Failing your IVA now might cause you more issues.

How long have you been in your IVA?

What assets do you have -Do you have assets to protect like a property which will be at risk in Bankruptcy?

You might have to pay contributions for 3 years depending on your income & expenditure.
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Foggy
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by Foggy » Tue Apr 10, 2018 9:18 am
Your payments in the IVA should cover all your essential expenses (including food) and, what is left goes to the creditors -- anyone in an IVA rarely has more than loose change at the end of each month -- that is how it is designed. As has been already mentioned, if you go bankrupt, you will have to find £750 up front ( although there are some reductions based on low income) and might still end up paying the same as you do now for three years.

Is your total debt less than £20,000? Do you own any assets, including your home? After essential expenses are you left with less than £50 a month ? Maybe a DRO would be in the running (similar to BR, but costs £90 with no ongoing payments).
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