BR/IVA and the future

MsLouise_2

hi guys.

im doing my best to get my head around all of this.

This is the most stressful thing ever! i'm in £23,000 of debt.. At the moment i'm going through payplan and at the stage of letter have just been sent to me to send onto my creditors. I've opened a new account with alliance and leicester.

Basically, i rent have no car.

i keep reading if you have no assests BR is the best option. I really dont know whether im doing the right thing and all I can think about is the future.

in your opinions what is my best option to start my life sooner. IVA takes 5 years yeh? then another year to clear your crdeit history? is that the same with BR? i keep reading people have been discharged after a year, what does that mean?

if I do the IVA, what happens say if i have to stop working in 3years if i hae children? or is it possible for me to get a car in any way? (i dont have one now as I live in central London, but what if i move away resulting in lower rent but needing a car- do PAYPLAN look at things like this, or would my credit not allow me to do anything??

im so confused and just want to get out of this asap.

debt_doctor

Hi,

I have no idea why you have been recomended for an IVA if you have no assets and rent a property. Would your employment be a problem if BR ?

An IVA lasts for 5 years, BR lasts for 1 year.

An IVA is always far more expensive than BR;

In an IVa you pay ALL your surplus income for 5 years, in BR you pay a percentage of your surplus income for 3 years, and would pay nothing at all if your surplus was less than £100 per month.

The affect on your credit rating in BR are similar to that of an IVA.

Is there any particular reason you are thinking about an IVA?

DD

wayforward_2

Just out of interest why does anyone do an IVA instead of BR?

debt_doctor

wayforward wrote: »

Just out of interest why does anyone do an IVA instead of BR?

The vast majority of IVA's are misold. If you cannot go BR because of the profession that you are in, have a property to protect that you cannot protect under BR ( many properties CAN be protected in BR) then they are usually a very bad expensive venture.

DD

wayforward_2

I was going to say! BR is a more favourable option for us than an IVA totally because of the property! We can secure the tiny equity (poss even negative) now rather than have it hanging over us for 4 years

debtinfo

wayforward wrote: »

Just out of interest why does anyone do an IVA instead of BR?

Another reason was that people often thought that there was more stigma in a BR than an IVA. But because of rule changes and and the current prevelance of BR this is no longer the case. Surely the IVA market is going to shrink in the future

debt_doctor

debtinfo wrote: »

Surely the IVA market is going to shrink in the future

Not whilst companies, including payplan (who are a profit making company, NOT a charity, as many think) continue to see those with some surplus income as a target to make money out of and withholding / distorting the true facts of BR and IVA's.

DD

MsLouise_2

debt doctor, i dont think there would ever be a problem with my employer? how does it become a problem with employment? do they have to be told.

I just want to do whatever is the quickest way to out of all this. i filled the form in with CCCS but not heard anything back from them. I wouldnt even know where to start if BR is the best option for me.

any advice?

debtinfo

There are a few jobs (not many) where it can be a problem, accountant, financial advisor, Policeman, school governer, MP (haha not likely to be bankrupt) etc. Most normal jobs are all right.

If you have decided that BR is the way to go then there are 3 steps.
1) ring the local COUNTY court and ask for the forms.
2) Have a look at them
3) Shout for help on this website

antarctica

I worked in finance before BR but hadn't worked for about 10 months anyway. Luckily I am thinking of a career change!

MsLouise_2

thanks guys, should i be contacting CCCS again (i sent them a completed form last week but not heard back). or maybe contact citizens advice - but i keep reading appointments are not available until the end of aug.

Ive already opened a basic account with alliance and leicester - i presume this wont be ok as only seems to be barclays or co-op.

few more Q's, sorry.

- could i still have montly things like mobile and internet - these are needed for work.

- these accounts (barclays and Co-op) do you get a card, so still able to make payments.. i ask this as a girl i know has done something similar, i dont know her well so dont know her story but she can only use her card at certain cash machines and has to pay cash alot if we go out.

- do you still have to wait 6 years to clear your credit history..... basically, i'm living in a shared house at the moment in London so the commuting is easy but what if i moved and needed to get a car to commute- would this not be possible for 6years.

- im so scared to cancel my direct debit at the moment. i'm thinking of letting them default then contacting them to say i'm strugling to pay, would you recommend this to then put the money aside to save for court costs etc?

thanks again for all the advice, this site is amazing and i'm sure its saved many lives!