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  • FIRST POST
    • magoo2516
    • By magoo2516 29th Oct 17, 7:00 AM
    • 4Posts
    • 0Thanks
    magoo2516
    On IVA but want to go bankrupt
    • #1
    • 29th Oct 17, 7:00 AM
    On IVA but want to go bankrupt 29th Oct 17 at 7:00 AM
    Hi all
    Am on IVA for 4months now, (£13000debt ) but now feel I should have went bankrupt. Rent house-no savings-no assets. I have teenage son in sixth form, but daughter recently came to live with me and ex disputing child benefit, evrything going up in price and I am in public sector with pay cap. Car on the way out , and have also stupidly kept a credit card open which now has 1000 pounds debt on it. The anxiety is killing me-up at 4am, constantly worried.
    My brother suggests just stopping the IVA payments (£140) for three months and paying the £700 to go bankrupt. I feel like this would be a better option for me-what do you think? Thanks in advance.
Page 1
    • GothicStirling
    • By GothicStirling 29th Oct 17, 7:56 AM
    • 967 Posts
    • 720 Thanks
    GothicStirling
    • #2
    • 29th Oct 17, 7:56 AM
    • #2
    • 29th Oct 17, 7:56 AM
    Personally, I don't think its worth getting blacklisted for 6 years for £13k - you definitely won't be able to do anything about getting a new car or renting somewhere else, or even opening a different bank account. Have you posted a statement of affairs on the Debt-free board? If I where you, I would look into seeing if I could reduce living costs or earn more money, before contemplating bankruptcy.
    • sourcrates
    • By sourcrates 29th Oct 17, 11:11 AM
    • 12,461 Posts
    • 11,855 Thanks
    sourcrates
    • #3
    • 29th Oct 17, 11:11 AM
    • #3
    • 29th Oct 17, 11:11 AM
    I wonder why a debt relief order was not mentioned to you prior to signing up for the IVA.

    IVA`s typically are for larger amounts of debt £30,000 plus, although there are no set limits, they cost a lot to set up and maintain, which is why a lot of them are mis-sold.

    Posting your SOA on the DFW board will tell us which option would best suite you, link here :

    http://www.stoozing.com/calculator/soa.php
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
  • National Debtline
    • #4
    • 30th Oct 17, 1:13 PM
    • #4
    • 30th Oct 17, 1:13 PM
    Hi Magoo2516,


    I would suggest you look at the terms and conditions of your IVA carefully, and make sure you get free advice from one of the debt charities before you stop your payments. You may find that the IVA is destined to fail if you have kept credit outside of the IVA (this is normally a breach of the contract).


    You may be correct that an IVA was not the best option, but you need to discuss your options in more detail to establish if bankruptcy or a DRO would be that much better. In bankruptcy, not only would it cost you £680 to apply, but if you have more than £20 per month available, in surplus income, that will be taken for 3 years in an Income Payment Arrangement (which could mean bankruptcy costs you over £5000) plus the negative implications of the bankruptcy. And a DRO would be unsuitable if you have more than £50 per month surplus.


    You also mentioned that your car was on its last legs, so you need to consider how you would repair/ replace this in any of these options (all would be difficult). I think a SOA would help others to further assist you.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Johno100
    • By Johno100 30th Oct 17, 4:13 PM
    • 3,162 Posts
    • 3,418 Thanks
    Johno100
    • #5
    • 30th Oct 17, 4:13 PM
    • #5
    • 30th Oct 17, 4:13 PM
    Personally, I don't think its worth getting blacklisted for 6 years for £13k - you definitely won't be able to do anything about getting a new car or renting somewhere else, or even opening a different bank account. Have you posted a statement of affairs on the Debt-free board? If I where you, I would look into seeing if I could reduce living costs or earn more money, before contemplating bankruptcy.
    Originally posted by GothicStirling
    Her IVA will have already have shafted her credit rating, it gets treated exactly the same as a bankruptcy for credit purposes.
    • amstel2
    • By amstel2 30th Oct 17, 6:47 PM
    • 242 Posts
    • 34 Thanks
    amstel2
    • #6
    • 30th Oct 17, 6:47 PM
    • #6
    • 30th Oct 17, 6:47 PM
    Her IVA will have already have shafted her credit rating, it gets treated exactly the same as a bankruptcy for credit purposes.
    Originally posted by Johno100
    Quite agree. Remember if you see through the 6 years of the IVA it will still be on your cr file for another 6 years after so your file is rubbish for 12 years.

    Go BR falls off after 6 years. Granted it will be on the London Gazette forever but that's only an issue for mortgage applications.

    I was in a similar situation to you a few years ago re a mis-advised DPP & IVA & i owed a lot more. I cancelled my IVA after 3 months used the money saved to go BR with an IPA under half of what the IVA payment was. It was the best thing i ever did my only regret is that i didn't do it sooner.
    • db2016
    • By db2016 6th Nov 17, 3:32 AM
    • 53 Posts
    • 182 Thanks
    db2016
    • #7
    • 6th Nov 17, 3:32 AM
    • #7
    • 6th Nov 17, 3:32 AM
    Not quite right on it being on gazette forever. It's on for the usual 12 months whilst your bankrupt then when discharged. 3 months.
    • Potbellypig
    • By Potbellypig 6th Nov 17, 8:52 PM
    • 153 Posts
    • 68 Thanks
    Potbellypig
    • #8
    • 6th Nov 17, 8:52 PM
    • #8
    • 6th Nov 17, 8:52 PM
    Not quite right on it being on gazette forever. It's on for the usual 12 months whilst your bankrupt then when discharged. 3 months.
    Originally posted by db2016
    That isn't correct.
    • sourcrates
    • By sourcrates 6th Nov 17, 9:21 PM
    • 12,461 Posts
    • 11,855 Thanks
    sourcrates
    • #9
    • 6th Nov 17, 9:21 PM
    • #9
    • 6th Nov 17, 9:21 PM
    Just to clarify, any bankruptcy/insolvency, only shows on your file for 6 years, no exceptions.

    Nothing to do with bankruptcy lasts forever, after 6 years you get a clean slate.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • bewildered1
    • By bewildered1 7th Nov 17, 12:42 AM
    • 32 Posts
    • 15 Thanks
    bewildered1
    Just to clarify, any bankruptcy/insolvency, only shows on your file for 6 years, no exceptions.

    Nothing to do with bankruptcy lasts forever, after 6 years you get a clean slate.
    Originally posted by sourcrates
    Except if you apply for a mortgage. If you are asked if you have ever been bankrupt, and you likely will be asked, you legally have to answer truthfully. This could have an effect on whether or not you are accepted for a mortgage and if you are accepted, what interest you will be charged. In this respect bankruptcy will follow you forever.
    • forgotmyname
    • By forgotmyname 7th Nov 17, 7:45 AM
    • 26,037 Posts
    • 10,383 Thanks
    forgotmyname
    Your name and address will be open for anyone to search on the London Gazette. That will be available for a lot longer than 6 or even 12 years.

    Some insurers ask have you ever been bankrupt also.

    Future landlords or employers could easily google your name and find your bankruptcy.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • luvchocolate
    • By luvchocolate 7th Nov 17, 8:26 AM
    • 1,479 Posts
    • 1,331 Thanks
    luvchocolate
    Just to clarify, any bankruptcy/insolvency, only shows on your file for 6 years, no exceptions.

    Nothing to do with bankruptcy lasts forever, after 6 years you get a clean slate.
    Originally posted by sourcrates
    This is untrue as mentioned in previous replies.
    I am amazed a board guide will give wrong information on this subject.
    • Potbellypig
    • By Potbellypig 7th Nov 17, 1:47 PM
    • 153 Posts
    • 68 Thanks
    Potbellypig
    Your name and address will be open for anyone to search on the London Gazette. That will be available for a lot longer than 6 or even 12 years.

    Some insurers ask have you ever been bankrupt also.

    Future landlords or employers could easily google your name and find your bankruptcy.
    Originally posted by forgotmyname
    This is 100% correct, in addition to the comment that you are legally required to answer truthfully when applying for a mortgage.
    • amstel2
    • By amstel2 7th Nov 17, 5:09 PM
    • 242 Posts
    • 34 Thanks
    amstel2
    My comments re the London Gazette are correct. Apparently it has B/R info going back to the 18th century. I also believe a discharged B/R challanged their details being held on it in court and lost.

    Always amazes me how bankrupts sometimes get treated worse than criminals.

    Also be aware the O/R conviently fails to tell you about the London Gazette. I was told in my O/R interview that everything drops off file after 6 years obviously this is un-true. They lied.
    Last edited by amstel2; 08-11-2017 at 7:22 AM.
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