Bankruptcy vs IVA

debtinfo

Hi yamaha, it works like this, they look at how much of the total income you provide say 40%. then allocate 40% of the joint ougings against your income, Then deduct your whole personal expenditure. This is your surplus. They then take 50-70% of your surplus (as long as it is above £99pm) on a sliding scale.

If you do not declare your partners income they will assume that he pays for 50% of the outgoings.

peachyprice

Charco wrote: »

Woah woah woah! (That's Olde English for "stop a horse")

I would seriously think twice before recommending (or listening to anyone recommending) anyone goes down the road to bankruptcy!

I'll put my cards on the table right now - i own/work in an insolvency company (not mentioned above) and you can think that that tint's my goggles if you like but before you proceed to this drastic road have a wee read of "just enough time to say goodbye" a few threads below this one.

Bankruptcy is not a cheapy cheap way out of debt, no-matter how deep. It's a difficult long journey not to be stepped into lightly. It's not just a matter of comparing the cost of Bankruptcy v IVA... the reason you may pay more in an IVA is coz it's worth it!

As for saying that the IVA providers listed above would definitely recommend an IVA coz they make money from them - i just dont know what to say to that! Who said that, if you're going to quote people at least get it right :rotfl:

CCCS also make large amounts of money from IVAs why would they not recommend it? Who knows? Perhaps it's because you have put your information into a machine that calculates an intricate algorithm and is completely fallible.

Before you do anything, SPEAK TO A HUMAN BEING who works in the industry. FOR FREE. Please! The choice at the end of the day will be yours but please speak to someone and get as much information as you can. (as for IVA's being suitable for "about on 3% of people" - where did you pluck this statistical fact from?) Those figures are well documented if you care to do some research.

I suggest if you don't like people speaking badly of IVA's you stick to the IVA board and not venture into this particular forum.

The bankruptcy forum is riddled with people that are now facing bankruptcy further along the line than necessary because the listened to IP's who could only see £ signs before their eyes.

I'd also be interested in your views on the 30%+ failure rate of IVA's, or do you not acknowledge that either

YamahaR6

Thanks, that makes that clearer

The only thing that's thrown me into turmoil now is Charco's response. What I can say though is with regards to long term effects, I NEVER want credit again, if I cant afford to buy it outright then I dont want it. As for mortgages, I've recently been seriously burned by having a joint mortgage with someone, hence my current situation so I don't intend on getting another joint mortgage with anybody else for the forseeable future. My new partner is in the process of buying a house which I will live in and contribute 50% of the monthly costs for, but I won't be included on the mortgage and nor do I want to be. This may change in a few years but i'll cross that bridge when I come to it.

Thanks to peachyprice though, you're response to Charco has made me slightly more at ease about the whole thing!!

Charco_2

As for saying that the IVA providers listed above would definitely recommend an IVA coz they make money from them - i just dont know what to say to that! Who said that, if you're going to quote people at least get it right :rotfl:
I didn't quote anyone but if i did i might use the words "vested interest" and "fortune"

(as for IVA's being suitable for "about on 3% of people" - where did you pluck this statistical fact from?) Those figures are well documented if you care to do some research.
Again i ask: Documented by who?

peachyprice wrote: »

I suggest if you don't like people speaking badly of IVA's you stick to the IVA board and not venture into this particular forum. I dont mind people speaking ill of IVAs, particularly if they know what they're talking about, I don't need to hide away in another forum. I'm merely urging caution to someone taking advice from an online forum of strangers instead of speaking to an actual qualified professional... do you pull out teeth in your spare time just because you've been to the dentist before?

The bankruptcy forum is riddled with people that are now facing bankruptcy further along the line than necessary because the listened to IP's who could only see £ signs before their eyes. An IP or his staff will offer best advice but it is up to the individual to make the ultimate decision... an IP cannot force you into an IVA. I might also point out that this forum conatins many people who know what an everyday stuggle bankruptcy and it's after math is. Not something to be taken on lightly.

I'd also be interested in your views on the 30%+ failure rate of IVA's, or do you not acknowledge that either. Why would i not acknowledge an IVA failure rate? Of course IVAs fail! Do your statistics cover the reasons for IVA failure? It comes down to didn't, wouldn't or couldn't co-operate with the IP. If an individual's circumstances change during the course of the five year IVA (and lets face it life is full of the unexpected - no-one goes out to deliberately rack up £1000s worth of unaffordable debt but things can happen) then in most instances the IP can help as long as the individuals co-operate. However an individual who refuses to co-operate (doesn't pay the agreed contributions) gives an IP no option but to fail

I can see you're very negative about IVAs and i'm not going to change your mind, but it's naive to think your negativity is 100% correct, perhaps you've had a bad experience and now you're transferring this onto someone else who might actually be better making a decision for themselves given all the facts in a way that's pertinent to their circumstances.

I'm not here to argue or point-score, i'd just be a bit more cautious about okaying someone to go bankrupt.

YamahaR6

My problem with going down the IVA route is moreso to do with the way my enquiries were handled by certain companies. Two that I spoke to pretty much tried to force me into agreeing to sign up with them there and then on my first telephone enquiry. When I explained to one that I needed time to think about it (I called on late a Friday afternoon) they said, "ok we'll give you a call back on Monday to get the ball rolling".

Another sent a pack out to me then rang the day it had arrived and said they'd arranged for a courier to come and collect the 'completed' pack 3 days later, which I told them to cancel, they don't allow you space to breathe and just try and take everything in!

The only company I've found to be helpful and non-pushy was Payplan. Infact they're so laid back that 12 days after filling in initial paperwork and soa's I'm still waiting to hear from them. Since doing these enquiries with regards to IVA I also submitted my details on the CCCS debt remedy site and they suggested bankruptcy, yet they obviously don't offer this to everyone cos my mum is on a dmp with them and she owes A LOT more than me and earns a lot less but that was the only way they could do it without affecting my dad's finances or lose their home. Out of interest I've also contacted the National Debtline to see what their suggestion is too. I think once I've got that back I'll be able to make a more informed decision.

One last question for now though, my partner is looking at buying a house in the next few months, will his mortgage be accepted if he's living with a bankrupt? Or is he better off not to tell his mortgage company? His name will be the only one on the mortgage so I'm guessing it doesn't really matter if I'm living with him or not, I could surely just be a lodger renting a room?

Charco_2

That may be the best way to go alright. Since you´d hope he is capable of getting a mortgage on his own then there is no need to mention you to his broker/supplier. Especially as you´re not even a bankrupt yet - Lodger all the way!

I really hope someone is able to help you sort out your finances. No matter how bleak, there is always a solution (even if you dont like the solution). It is a minefield choosing the right one too but you´ve just got to hope that the one that ticks most boxes for you now will also suit you in a year or two too... scary!

Best of luck Yamaha, and sorry if I threw a fox in the chicken coup for you a few posts ago, it´s just important not to rush into any serious commitments before you have all the facts! (Also I know what insolvency companies can be about selling and forcing the idea an IVA, forcing square pegs into round holes, but at the same time there are companies out there who are happy to talk too!)