Bankruptcy

james32_uk

Can someone tell me what is involved in bankruptcy? I have no assets to protect and my IVA proposal has failed at it's current offer.

ms_london

http://forums.moneysavingexpert.com/showpost.html?p=1814036&postcount=37

It still amazes me that someone with as much excess income as you wants to go down the bankcrupcy route.

You posted on the 20th March enquiring about an IVA/DMP - thats over 3 months ago.

I appreciate not everyone wants to post a SOA or the level of their debt/income, but something seems very odd to me.

Why did you not get accepted for an IVA? Do they give a reason?

james32_uk

My good friend MS_London How are you doing?

My IVA was accepted by all the creditors who voted apart from HSBC who have suddenly decided to decline all applications under 35%. Apparently is causing all hell to break loose down at the IPs as everyone's getting rejected.

I was just after people's opinions and knowledge about the advantages and disadvantages of bankruptcy are as it's something I need to consider once again. It's important to know all your options!

skylight

With that much disposable income, the OR will take it all and split it up between your creditors anyway, but having a bankrupcty on your credit file is much worse than a IVA (So wish I could do an IVA instead.....)

There is lots of advice on the national debtline website - the link is at the top of the page!

james32_uk

charlotte664 wrote:

With that much disposable income, the OR will take it all and split it up between your creditors anyway, but having a bankrupcty on your credit file is much worse than a IVA (So wish I could do an IVA instead.....)

There is lots of advice on the national debtline website - the link is at the top of the page!

That's what I've always thought to be honest. I'd much rather go down the IVA route no matter what everyone keeps telling me. Looks like I'm gonna have a nightmare trying to get one accepted though.

ms_london

I think its the fact that you wont post your level of debt that makes me suspicious. Obviously if it exceeded your income & meant you would be repaying it back for the next 50 years, fine, but you are young (23 or thereabouts), I assume no dependents, and you obviously have excess money to throw at your debts. Going bankcrupt doesnt mean that you dont have to pay ANYTHING back, so I dont understand why it appeals to you so much!!

What have you been doing in the last 3 months? Paying your creditors? Or hiding from them?

Oh well, I am sure you will get things sorted out eventually.

ms_london

james23_uk wrote:

That's what I've always thought to be honest. I'd much rather go down the IVA route no matter what everyone keeps telling me. Looks like I'm gonna have a nightmare trying to get one accepted though.

Why cant you set up a debt management programme yourself? I dont get it. Its not that hard. A lot of people have managed to negotiate full and final settlements for a % of the actual debt they owe.

james32_uk

I've been paying my creditors token payments as advised by Payplan whilst trying to get an IVA sorted. With the same surplus income I was able to offer for an IVA it would take me 12 years to pay off using a DMP. Therefore its a choice between 5 years with an IVA or 12 years with a DMP.

ms_london

Could you not go back and offer HSBC 35% or is it not as simple as that?

You irritate me too much I'm afraid so I will let you get on with it.

I may have slogged my guts out to repay my debt rather than going down the easy route, but I know I did the right thing, and I have my trip to look forward to so it was all worth it in the end.

I just dont believe that you wont run up debt again & get into the same predicament, but hey, its your life, I'll leave you to it.

lynzpower

James

I wonder whether you could actually post your SOA so we can find thisextra couple of % for you.

I sense something needs to happen to break the deadlock here, and I wonder whether this might be it?

james32_uk

Thanks Lynz. I've already offered to increase my proposal to 35% which will really make things tight. However, my other big creditor is Student Loans who havent voted yet. They've just raised their minimum to 40% so I have to cross my fingers that they dont vote during the adjornment period.