A Free Bankruptcy, IVA And Simple IVA, Insolvency Advice Forum

[andymc]

in happier times i had a good sideline selling online, this led to the banls/CC companies extending me a large line of credit (@£62000), things have dried up in the recession and all im left with is my 9 to 5 job, this pays around £1400/month, i have childcare to pay of £250 and a debt to my father of £300/month with 12 months to run, how best should i proceed? im at my wits end and unsure what to do, there will be some disposeable income for an IVA, what should i do?
thanks for your time

[Hg]

Do you have any assets to lose if you go bankrupt?

You also need to be aware that bankruptcy will not look too kindly on seeking protection from all your other creditors but paying off the debt to your father.

[andymc]

i was thinking of an IVA

[Hg]

The reason I asked was because I was wondering if an IVA would actually be better for you, often it's not the best choice unless the person has assets that they would lose, needs to carry on a business, or needs to carry on as a company director or something like that.

A lot of people go for IVAs because they think they carry less stigma, or because they are scared of bankruptcy when they shouldn't be. But as well as lasting longer than bankruptcy and often costing more, for most financial purposes an IVA is still an insolvency and regarded as just as terminal as the other form of insolvency - bankruptcy.

If you want to discuss IVAs in more detail you could give myvesta a ring on their freephone number, or perhaps take a look at IVA.co.uk where there's a very busy IVA forum where some very knowledgeable people that are very regularly involved with IVAs post.

As well as how much your debts are, the main things people will need to know to consider whether you might be able to enter into an IVA are

- Who are your creditors? (Some creditors are notoriously reluctant to agree to an IVA)
- How much can you afford to pay each month?