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Payplan IVA vs Bankruptcy

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Hi all,

I was looking for some advice.

I have approx £55k worth of debts, and have already had one failed IVA with Budsworths (aka The Debt Advisor), and due to lots of companies who have bought debts from my defaulted creditors hassling me in recent months, I have submitted my details to Payplan, along with my estimated monthly spending, which according to my estimations left a disposable income of approx £300. I have just spoken to them and they have revised my spending, and have told me that in actual fact, and unbeknownst to me, my monthly disposable income is a whopping £678! They have given me two options - either a debt management plan where they reckon I'd have to pay £800 (!) a month, or an IVA for my full disposable income. I was thinking though, while the upheaval of going through bankruptcy has never made me consider it in the past, the fact that I don't own my house or have a car or a family made me wonder whether I ought to actually go down that road.

Any advice on what I ought to do would be appreciated.

Comments

  • dubiousone
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    Hi blueafternoon. I suggest you hop over to the bankruptcy board and start a thread there, ask as many questions as you like, there's some incredibly knowledgable people there. To start you off though I will say this. Firstly, if you post your income and expenditure up on the BR board someone will go through it with a fine toothcomb. It is unlikely that you will have that much surplus, IVAs are a lot more 'tight' so to speak with living expenses. BR living expenses are far more realistic. I can't say whether BR or IVA is best for you, you need to decide that. Ask yourself a question though, If I've failed one IVA already, will I complete the next one? You made a valid point about having no assets, family etc. A small % of IVAs actually complete, the BR board is full of failed IVAs because the payments are unrealistic and it's hard slog budgeting on what the IVA company allow for essential living. I am no expert but that's my input for you. Contact CCCS or National Debtline for some advice (if you can get through) and start a thread on the BR board, you will get a lot of help and advice. If you are concerned about the process, ask away on the board and read lots of threads.

    I hope this helps,

    Regards,

    Dubiousone.
  • toshtec
    toshtec Posts: 26 Forumite
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    Hi all,
    I was thinking though, while the upheaval of going through bankruptcy has never made me consider it in the past, the fact that I don't own my house or have a car or a family made me wonder whether I ought to actually go down that road.

    Any advice on what I ought to do would be appreciated.

    This has got to be a no brainer you say above you dont have anything to protect and unless your job is in Law or banking go for it.

    If you are married and your wife/partner is not involved in the bankruptcy she works etc then divide all your outgoings by 50% as she will have to pay her half of the expenses but by the same token the Official receiver cannot compell her/him to make any further contributions into the BR
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