Bancruptcy or IVA?

Count_Waffellmuncher_III

Now I'm actually asking you good people about a 3rd party, someone very close to me, who for obvious reasons I'd like to help. Now I've been reading this board for some time, months in fact, and based on the comments and situations I've seen on here I'm pretty certain that I know which way I would turn if I were my friend, however they're not so sure, and naturally enough want to make the right decision.
I figured if I outlined their situation, then we could get another opinion or 6.;)

Total debt is in the region of £65-70K, all unsecured, built up over many years of overspending, reliance on CCs and loans.

Monthly take home income is approx £2K, essential outgoings add upto about £1400.

There's no assets, no property, they live alone, in rented accommodation, with no dependents.

That probably sums up the situation in simple terms. Any more info required, ask away.


I know what I think is the best solution to their problems, but lets see what other people think.
Many thanks in advance.

RAS

Any car? If so, what value?

headoutofsand

As far as I can tell these IVA type companies are nothing short of criminal. Everyone who I have spoken to including those who have one regret it. These companies make it sound so easy, after all it is they who are making a profit from despair. Personally I despise these companies, however this is my personal opinion and one should do what one thinks is best.

BR is a terrifying prospect for most individuals but when looked into more deeply, can be better than the alternative route.;)

Count_Waffellmuncher_III

RAS wrote: »

Any car? If so, what value?

Yes there's a car, it's needed for work commuting, they live in a village some 20+ miles from town, it's worth maybe £1800, they know that if they go BR then there's a chance that that will be taken, but I've said that based on other peoples experiences on here, even if it was, they'd get an allowance of some lesser amount to replace it.
Personally I don't see the car as a serious issue, I know family can help with a cheap run around if required, after the event.

Count_Waffellmuncher_III

headoutofsand wrote: »

As far as I can tell these IVA type companies are nothing short of criminal. Everyone who I have spoken to including those who have one regret it. These companies make it sound so easy, after all it is they who are making a profit from despair. Personally I despise these companies, however this is my personal opinion and one should do what one thinks is best.

BR is a terrifying prospect for most individuals but when looked into more deeply, can be better than the alternative route.;)

I've made it very very clear about the scum that often run IVAs and advised that if IVA is the chosen route, then they should only go with someone recommended by the CAB. Payplan for example.

headoutofsand

Count_Waffellmuncher_III wrote: »

I've made it very very clear about the scum that often run IVAs and advised that if IVA is the chosen route, then they should only go with someone recommended by the CAB. Payplan for example.

I am very pleased you have;)

peachyprice

No assets to protect, and presumably a job that won't be effected by BR.......It's a no-brainer really.

Count_Waffellmuncher_III

peachyprice wrote: »

No assets to protect, and presumably a job that won't be effected by BR.......It's a no-brainer really.

OK so that's one person very much in the BR opinion then. Thanks for coming forward.:D
Can you see any benefits in going for an IVA? As you've said, there are no assets, and job wise it shouldn't make any difference.

lisamummytoarchieplusbump

can i just say love the username:D

Count_Waffellmuncher_III

lisamummytoarchieplusbump wrote: »

can i just say love the username:D

You may, thank you.:cool:

Round_The_Bend

I would suggest that your friend do the 'Debt Remedy' on the CCCS website, as a starter. There is a danger that s/he is underestimating his/her monthly expenditure, meaning that the IVA may not be possible.

My understanding is that creditors are now looking for anything up to 40% of the outstandng debt to be repaid, before agreeing to an IVA. Given the size of the outstanding debt, I suspect that your friend might be borderline for an IVA anyway.

I know that when I carried out my own online 'debt remedy', juggling the figures only slightly changed the recommendation from IVA to Bankruptcy. This and reading other comments on this forum has convinced me that bankruptcy is the only viable option.

Tell your friend that although it's really difficult to confront this issue, carrying on the way in which s/he is currently is likely to be far worse in the long-term, in terms of physical and mental health.

All the very best to him/her, whatever s/he decides.