IVA versus BR?

Lightattheend

Can you wonderful folks help me?

I am going BR very soon, I have done all the investigating and working out and it is the best way forward for me, and my children. However my ex (my daughters Dad) will end up with all our joint debt, including a mortgage shortfall of at least 40k and an unsecured joint loan of 26k. He understands this and in fact was going for BR himself but he has now, apparently, been advised by the CCCS to go for an IVA. I know he's worried about the implications of BR and, knowing him, may not have listened or explained things properly to the CCCS but I'm not sure he's looked at the longer term implications. He's getting married shortly to a lovely lady who has become a great friend (bizarre as that may seem) and there may be children within the next 3-5 years so his financial situation is not fixed, especially as he's a lorry driver who's overtime has been dramatically cut back. I really want to help him and his fiancee so any advice for or against each route would be gratefully recieved. I do know he/they have a very limited budget already and there is not a large amount to be used for IVA payment (he was paying about a third of what I was under his DMP).

I've printed off the IVA guide from this site and will go through to highlight key points for him.

Many thanks in advance

beentheredonethatstilhere

Maybe you need to sit down with the Fiance and go through it all with her. Introduce her to this site , though that might not be a good idea if they know your nickname and you want to be anonymous. Get her educated on what is what and then let her talk to him. He is not your responsibility anymore and all you can do is tell it as you see it and let them make their own mistakes.

Lightattheend

Beenthere, I've already spoken to the fiancee - in fact I tend to talk to her about anything financial and its her who arranges for the maintenance money to be paid for my daughter. I am treating my ex just like any other friend who is having difficulty, it is in my nature to help. I can't ignore it as, although he is not my responsibility, he is my daughters father and she spends time with him every week which she benefits from and I don't want to put that at risk. I really just want to have the facts in a good presentable order to hand over and then let him sort it - I won't do that for him, he must do it himself.

As for pointing them to this site, I've already done that, nothing I say on here would I mind them seeing as I have no animosity towards either of them.

Merry_Gentry

TBH I think you have done everything you can. You have made your ex and his fiancee aware of the situation, and it's now down to them to take the appropriate advice. They may prefer going down the IVA route rather than face BR, and if that is what they want to do then that's their decision. If your ex has had advice from CCCS, and you have shown them this board, let them make their own decision - that way, it is THEIR decision and they can't blame you for it.

Lightattheend

Folks, I think maybe I haven't made it clear. All I'm after is advice on the comparison between an IVA and Bankruptcy. I'm NOT telling them which way to go that is there decision. I think the fact he is my Ex maybe clouding the issue. I am asking what would you tell your friends/colleagues are the pros and cons of the two processes and I'm asking you as you are people that have gone down this route. As for pointing them in this direction I have but I know they're not as 'up' with using the computer as I am so I just want to help by giving them the necessary information for them to work with. Wouldn't you do the same for your friends and family?

So far I have not had anyones opinions on the pros and cons of both routes which is what I was after so I think I may as well give up trying to help, obviously isn't meant to be. Sorry for bothering you.

Round_The_Bend

I seriously considered an IVA but realised that the income that I would be left with made no real allowances for emergencies. This was a serious consideration, given that the IVA lasts five years. I also had a look on the IVA board and to be honest, the sheer level of failed IVAs convinced me that bankruptcy was the most realistic option.

I went bankrupt in March 2009 and so far, touch wood, everything has been far smoother than I would have expected. I do have an IPA but my 'surplus' income is significantly higher than it would have been under an IVA. My allowances for child visitation (my son lives abroad), living costs, petrol, etc, were very generous, which I probably would not have had under an IVA.

Everybody from the judge at bankruptcy court to the staff at the Official Receiver's office has been fantastic, i.e. sympathetic and non-judgmental.

I was worried about my name appearing in the paper, as my work is quite sensitive but if it did appear, I didn't see it and nobody else has mentioned it or been any different towards me.

Even though it is still early days, my life is immeasurably better since going bankrupt. I feel far less stressed, resulting in an improvement in my general outlook on life, my personal relationships have improved and I am saving money for the first time in almost ten years.

I am not suggesting that bankruptcy is easy, despite what I have just written. I was actually pretty close to rock bottom when I made the decision and switched back and forth, before finally opting for bankruptcy.

This is my view so far. I would suggest that you maybe post on the IVA board for opinions, if you have not already done so. Finally, if your ex-partner or his fiancee want to PM me for any further info, I will do my best to offer them support. I think that it's great that you all appear to have dealt with the aftermath of the relationship breakdown so sensibly, so best of luck to you all.

Merry_Gentry

LATE, I didn't mean to offend you. The problem is, no one can really say for sure what is the best move for someone else. And too often, when we give people advice, rightly or wrongly they do kinda blame us if it doesn't turn out the way they want it to.

I'm sorry if I upset you, it really wasn't my intention. I don't know enough about IVAs to give the pros and cons of them - only that they are tighter on your SOA than bankruptcy. All I can say is they need to seek professional advice where the person has access to all of the ins and outs of their debts and income and can give a full evaluation.

Once again, my apologies.

LilyBart

Hello Late,
Given that an IVA has a similar effect on your credit files as bankruptcy, I think the most persuasive argument in favour of BR is quality of life in the short-term. The expenditure allowances in IVAs appear to be a lot less generous, plus there is always the dread possibility that the IVA might fail, meaning your ex would have to go bankrupt having shelled out lord knows how much in IVA fees. Merry's right in saying it has to be a personal decision, but from what I've seen on this board, it seems that quite a few BRs in this community have been through IVAs beforehand. The only advantage I can see to IVAs is to do with stigma, and if this is what is worrying your ex about bankruptcy, you should be able to reassure him that it's not as bad as he might fear.
Lily

Lightattheend

Thanks for the information given here, its been helpful and I shall pass it on. I've also printed off copies of the Guide to an IVA and Guide to BR and will pass those on to.

Merry - I was probably being a bit over sensitive but I really want to try and help them to sort everything out for my little girls sake. Her dad doesn't deal well with money (partly the reason I'm in the mess I am now as I didn't help when we were together) and, although his fiancee tries to advise, he's very stubborn so if she has all the facts in black and white it will make a big difference. She doesn't use the PC at home (its my ex's) and can't use her works one so by my doing this it will really help.

Thanks again everyone.