Bankruptcy and FIVA - Need some help...

akpsi_pr

Hi again everyone... Need some more advise please!



Facts:

• Scheduled to go BR w/c nov 16th.
• Unsecured debt in excess £100k+
• No Assets
• Home already repossessed
• Unemployed

As i am sure you will agree the only real decision is to go BR... but to throw a spanner in the works a relative has told me he is prepared to give me between £5k - £10k to offer full and final settlements to avoid going BR or even to set up a fast track IVA after I have been made BR which will in turn get the bankruptcy cancelled if accepted by the creditors. Whats the chances of being accepted? What do you think I should do? Make offers now to my creditors or wait until bankrupt and then try for the FIVA? PLEASE HELP! I feel really confused.:eek:

debtinfo

hi FIVA's are almost never accepted, there have only been about 5 that i know of in the country and are usually when there are businessess to protect.

Tinytim

Hi akpsi,

I don't see that you would now gain any advantage by avoiding bankruptcy on the basis of the information you have given. Unfortunately, if you have already been repossesed, then this has already done in your credit file as far as getting a mortgage is concerned - more so than a bankruptcy would.

It could be argued that by avoiding bankruptcy you would present yourself as a more attractive prospective tenant/employee. However, even this would only be temporary, as with £100K plus unsecured and being unemployed, it would only be a matter of time before CCJ's were obtained by creditors, and these would also show up on your credit file.

It is very unlikely that your creditors would agree to a 5% or 10% return (even though they will get nothing if you go BR) and so, if you have a relative that is prepared to gift you this money (you can't borrow it from them as you are already aware you are insolvent), it may be better to wait until after discharge when the money could be used to get you back on your feet

akpsi_pr

Thank you for your advice Tiny and Debtinfo!

It seems a silly business decision for the creditors not to accept FIVa after being BK but hey hoo, maybe you are right to use the money from a relative to get back on my feet in a years time.