Is bankruptcy possible?

alanshaz

I am new to this forum and need some speedy advice. I have been given an offer of an IVA at 87% which seems very steep to me, leaving myself and my partner with a small amount each, each month. We don't feel we can get by for 5 years. I asked IVA provider to leave us a little more each month and they said this was not possible. Am I likely to get a similar answer from other IVA providers?
We have been coming around to thinking if bankruptcy would be a better idea, only in as much as with the IVA we've been offered, we will be paying more than we owe and £15,275 of that was in IP admin costs.
I earn £22,000 and my partner £27,000.
We owe a total of 73,931 (unsecured debt) and IVA voluntary contributions is asking £79,260.
We are Council tenants with no mortgage and own a car that's valued at £895.00.
Nothing much to show for all our debts!
Any advice regarding the IVA's offer of 87% would be very welcome. Should we consider looking else where for other IVA's and would bankruptcy be viable option in our case?

peachyprice

Unless either of you are employed in a job that would be effected by bankruptcy there's no viable reason to enter into an IVA. You have no assets to protect, your credit files will be shot to pieces anyway, and you'll be struggling for the next 5 years to pay back more than you owe.

DVardysShadow

You are going under for debts of 1.5 * income? And you are earning well! I would have thought that you could pull it together without the IVA just as well as with the IVA. Suggest you post a Statement of Affairs.

Trollfever

If you are struggling to make even the minimum repayments on your debts and think
an IVA might be an option you must get personal advice before signing up. Yet
equally important is who this advice comes from; you need non-profit debt counselling
help, in other words a one-on-one session with someone who is paid to help
you, not make money out of you. This is different to ‘free’: many commercial companies
say they’re free as you’re not charged directly, but you’ll often pay somehow.
The three major places are: The Consumer Credit Counselling Service

www.cccs.co.uk Telephone: 0800 138 1111, National Debtline

www.nationaldebtline.co.uk Telephone: 0808 808 4000, and your local Citizens Advice

Bureau www.citizensadvice.org.uk

http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf