iva or bankruptcy

saff4x4cosworth

hi we are on a iva at the mo, but our house is being repossesed, so it will need re negotiating to include this, or do we go br not sure what to do as the missus is terrified about going br and the interview we only have 4 yrs to run on iva so would be over sooner any info appreciated

debtinfo

Hi, first of all i would say that no one can tell you which you should do, it is a decision you have to make.

I can answer any questions about bankruptcy, others can answer about IVA's

The points you have raised, You will see from the many many posts that the court bit of bankruptcy is purely procedural and nothing to be worried about, many people dont actually see a judge and the ones that do are usually only asked 2 questions and it lasts just a couple of minutes.

The Interview - I used to be an examiner at the OR's office and have conducted hundreds (probably thousands) of interviews. They again are nothing to worry about, as long as you are upfront and honest. The fact that you have been in an IVA and tried to sort your money problems is likely to make your interview both shorter and easier

any other questions do ask

Also the bankruptcy only lasts 1 year, even if you have to make payments, which less than half of people do, these only last 3 years and are far more flexible than an IVA

fermi

debtinfo wrote: »

Also the bankruptcy only lasts 1 year, even if you have to make payments, which less than half of people do, these only last 3 years and are far more flexible than an IVA

Odd you should mention that. I worked it out yesterday for 2009.

(yes, I know the case years won't match up so it is very approximate )

Individual bankruptcies in 2009 = 74,670

IPAs (15,363) + IPOs (64) = 15,427

So ≈ 20%

saff4x4cosworth

thanks a lot for that, we have friends that went bankrupt, they said the interview was really intense with questions about where all the money gone, going through statements etc thats what is scaring her, if they were not happy with the answers you give can they refuse you BR or is it just a formallity, we are currently paying £225 on our iva and to be honest its tight to make as we have found the budget they allow you for things very unrealistic, there is not enough allowance for things like gas water elec as we are in arrears with these our bills are high, would these arrears be included in the BR thanks a lot for your advice

saff4x4cosworth

that is also our worry that we will have to make payments like our iva and be struggling to pay them the luck we are having we will be in the 20%

fermi

saff4x4cosworth wrote: »

that is also our worry that we will have to make payments like our iva and be struggling to pay them the luck we are having we will be in the 20%

If you are struggling to pay an IVA of that amount, then it's probably unlikely that you would have to pay anything (or much) under an IPA.

Even if you had "surplus" then you pay just a % of it. Unlike an IVA where you pay all of it.

If you feel like posting up your current budget, then the people here good with those can take a look.

Budget calculator here: ---> http://www.makesenseofcards.com/soacalc.html

Arrears of gas/electricity would be wiped by the BR. Although a payment meter may be need after.

fermi

saff4x4cosworth wrote: »

thanks a lot for that, we have friends that went bankrupt, they said the interview was really intense with questions about where all the money gone, going through statements etc thats what is scaring her, if they were not happy with the answers you give can they refuse you BR or is it just a formallity

No. The OR cannot do that. If a court makes you BR as you are insolvent, then that is it. Full stop.

I can understand the anxiety about the interview, but really is not bad.

It is an interview, not an "interrogation".

As said, the fact that you have tried to sort things with an IVA will be a big plus.

saff4x4cosworth

thanks it really helps i will put a budget on here tonight with the arrears really appreciate your advice

dancingfairy

Hmmm - maybe your friends weren't very clear in their answers and so they needed more questions to clarify or maybe they weren't prepareds for the questions or maybe they were just so stressed it felt like an intterogation?
Anyway - for most people I have read about on here it seems to have been a very straightforward process and almost an anti climax for a lot of people as there was very little to it.
I am sure posting on here and on the IVA board will give you enough info to make the best decision for you and your family.
Good Luck with whatever you decide.
df