Big debts, no assets - IVA or BR ?

property.advert

Reading here (thanks previous posters) and elsewhere, I'm getting a feeling that if you don't have any assets, then BR is the way to go. Would people agree ?

MIVAA

Yup,

The general rule of thumb is:-

If you don't have either property or an income to protect which would be lost through a bankruptcy - then bankruptcy will be the fastest and cheapest method of becoming debt free.


MIVAA

SouthCoast

MIVAA wrote: »

Yup,

The general rule of thumb is:-

If you don't have either property or an income to protect which would be lost through a bankruptcy - then bankruptcy will be the fastest and cheapest method of becoming debt free.


MIVAA

Agreed....................., but keep in mind Debt Relief Orders.

MIVAA

SouthCoast wrote: »

Agreed....................., but keep in mind Debt Relief Orders.

Very true,

thecableguy12

bankruptcy:money:

althas

Talk to a professional, there are worse implications for you with bankruptcy than an IVA and you will need to get professional advice on these

Yes br will most likely be the cheapest option. It was for me. But I felt that as I had chosen to take the loans and credit (no one made me sign for it and yes maybe the lenders need to take some responsability for how easy it is to get. BUT in the end it was my decission) I wanted to pay back as much as I was able to, so I am applying for an IVA

Just get advice from someone like CCCS before you decide

property.advert

althas wrote: »

Talk to a professional, there are worse implications for you with bankruptcy than an IVA and you will need to get professional advice on these

Yes br will most likely be the cheapest option. It was for me. But I felt that as I had chosen to take the loans and credit (no one made me sign for it and yes maybe the lenders need to take some responsability for how easy it is to get. BUT in the end it was my decission) I wanted to pay back as much as I was able to, so I am applying for an IVA

Just get advice from someone like CCCS before you decide

So just what do you think are the worse implications with BR ? Not being funny, just asking.

Charco_2

Well, there's the stigma and what everyone else might think (if they find out and if that type of thing matters to you!)

Look it really just comes down to what you feel is right for you... lots of people make decisions they later regret. You might decide to go bankrupt and regret it later, you might decide to enter an IVA and regret that - if we had crystal balls we'd never make a mistake!

Some people like IVAs as an alternative to BR, it's less intrusive (a bit), and it gives some sort of return to the creditors so at least you've tried to pay some of your debts back while also having the benefit of knowing you're not snookered for life. Neither solution is supposed to be a picnic but BR is supposed to be a last resort.

Other people turn straight to BR because they've had enough of the creditor pressure and have already tried to make reasonable compromises with their banks unreasonable demands.

BR might be quicker or cheaper but it certainly aint no easy way out!

You need more information specific to your own case from probably more than one source and then make the decision you feel best suits you.

Good Luck

property.advert

"snookered for life"

Just what do you mean by this ? You are talking about IVA and BR and it would seem to indicate that there is something connected with BR which makes something else impossible for life.

I'd like to know what you were referring to. Thanks.

Charco_2

Sorry no, dont panic. I'm not saying a BR or an IVA will snooker you for life, i'm saying that without debt solutions available like BR or IVA then you (and lots of people) would end up snookered for life - which is how the banks would like it to be!

While individuals have to accept some of the responsibility of running up large amounts of debt, the banks similarly need to have a look at their policies which also allowed this to happen. It's not reasonable then to expect individuals to have to pay for this debt indefinitely til death.

While individuals may make bad financial decisions, the banks that lend the money are also in possession of all the facts before they lend the money out... and they are trained professionals who should know better but their goal is not responsible lending, it's profit maximising! They should take it on the chin when it blows up in their faces!

Rachel_1112

Bankruptcy is your best option, an IVA is ok if you have enough coming in each month to pay your debt off, but bankruptcy ends it with out the worry, you would still have this on your credit file for six years whatever you do, you just have to be prepared to wait out the six years, no credit, only a basic bank account, but after all the hassle and sleepless nights worrying, will you care, you can get your life back on track after it will be a huge relief.