IVA dilemma...

Jam_Buttie

March 2007 I entered into an IVA with Freeman Jones. This was for £302 per month for 5 years. Payments have gone up to around £340 due to my income rising etc. ANyway, our situation changed and can onyl afford £200 per month, which the Creditors have accepted.

I have another 2.5 years to go until completion, which will see me with a clean slate. My OH wants me to go BR, but i'm against this as I my thoughts are if I continue/finish the IVA then I'm a good boy.

How long does BR stay on file for?
How will it affect me in the futre v's a completed IVA?
What happens with my car insurance and mobile phone bill as they are classed as having credit?
What heppens to the money already paid into the IVA?

fiveyearplan

Jam_Buttie wrote: »

March 2007 I entered into an IVA with Freeman Jones. This was for £302 per month for 5 years. Payments have gone up to around £340 due to my income rising etc. ANyway, our situation changed and can onyl afford £200 per month, which the Creditors have accepted.

I have another 2.5 years to go until completion, which will see me with a clean slate. My OH wants me to go BR, but i'm against this as I my thoughts are if I continue/finish the IVA then I'm a good boy. Why does she want you to go BR?

How long does BR stay on file for? 6 years but some things you have to declare you have been BR if asked (insurance etc)
How will it affect me in the futre v's a completed IVA? Same as insurance above etc.
What happens with my car insurance and mobile phone bill as they are classed as having credit? You can keep paying them as normal.
What heppens to the money already paid into the IVA? It would be down the drain.

What were your reasons for IVA over BR in the first place? An IVA is a form of insolvency and you are on the Insolvency Register.

You might want to post this on the BR board for a wider range of opinions.

Jam_Buttie

The reasons for the IVA were: My OH came out of work due to illness, so I was keeping us both. Rent, credit card bills and two loans, were leaving me with nothing. Thats before petrol or food... But I was putting my head in the sand and thinking it'd be ok.

My OH wants me to BR as "it's easier and wipes all the debt off".

I owed around £35,000 with interest...

fiveyearplan

No, I was asking why you chose an IVA instead of bankruptcy in the first place - do you have a mortgaged home with a lot of equity? What type of job do you do? Who did you go to for advice? etc.

fiveyearplan

On the front page of the BR board there is a guide to bankruptcy sticky that may answer a lot of your questions.

Charco_2

Hard to come up with a reason for going bankrupt if an IVA suits your situation... especially now since you are in an IVA and have been for 2.5 years!

Given your level of contributions to your IVA, you may be asked to make BR payments anyway. And it would be a new blemish on your credit record lasting for 6 years from the date of BR... the IVA will show on your record only for 3.5 years from now! Also, once an IVA is done it's unlikely you'll have to refer to it again whereas a BR may stay with you for life.

As for the money already paid in to your IVA, it's gone. The IP will take their agreed share and disperse the rest to your creds (but this wont be much) and instead of having the debt written off in two years time, you'll be left to face the bulk of the £35k debt you had in the first place (although obviously a BR would deal with this.

I know an IVA is not easy, but it does strike me as easier than BR and especially so if you're comparing Bankruptcy with HALF AN IVA... but then that's just my opinion!