IVA vs BR - Life during and after???

tasha-debt

Hi,

I have around £17.5k of debts, im 28.

I am really struggling now with repayments due to all my cards being high interest and I can not get any new 0% cards.

A friend of a friend who is a financial advisor said if you do an IVA or DMP your credit is screwed any way so you may as well go BR.

I guess what I want to know is what life is like after BR vs going on a DMP/IVA. Does a BR not show on your credit report after 6 years, would the 6 year clock only start on a IBA etc once you have paid it, so it could be 11 years????

Do people find that within 6 year sof a BR your life is back to normal, what about mortgages, would a BR person ever get one?

Sorry if I am rambling a bit, just very confused and so !!!!!! off with myself that I got in this mess.

Thanks

Sunnylooloo

Hi

have a chat with one of the debt charities and weigh up you options - I found CAB and National Debtline brilliant.

http://www.citizensadvice.org.uk/index/getadvice.htm
http://www.nationaldebtline.co.uk/
http://www.cccs.co.uk/


No one here can tell you what way to go, unfortuantely you have to decide that for yourself.

Although you credit can be mucked up with DMP or IVA - the impact of BR is huge and you must read all about it and it really is not a step to be taken lightly.

Regarding the 6 years someone will be along to let you know what happens as I am not too sure myself.

You may also want to post up your SOA so people can get a picture of your situation and they will be able to tell you what is and is not allowed in BR and if you have to pay an IPA

Hope that helps a little

Darnit_2

Tasha-debt, I was a DFW wannabe too before BR (under a different user name, because I can't seem to get back in, and it is also a bit embarrassing when I had these big plans to clear my debts as well as having a life, I was just dreaming). It isn't an easy decision, but now I look back at the old DFW thread and think how much easier life would be for many of them if they took the plunge. It is a really hard thing to do, and it feels terrible for a while, but it does get better.

Having been there, ask yourself this question first:- If I carry on paying my debts at an affordable rate (be realistic), how long will it take me to be debt free? If the answer is more than 3 years, then get some advice. The fact is that when BR, the "reasonable living costs" are a little more comfortable than either the DMP I was on, any IVA that was possible or I would allow myself. The credit rating is trashed up to the date of bankruptcy, and after 6 years drops off your file. So 3 years maybe on a comfortable payment plan if you have some income left over, then nothing to pay, then 6 years later clean slate. same as an IVA I believe. If you go on a DMP, then it is trashed for as long as you miss or pay reduced payemnts, so potentially a long time.

One thing you will learn though is, that the credit rating won't be as important to you, as you won't want to borrow for a long time, and as little as possible, the only thing you need to plan for at your age is maybe a mortgage.

tasha-debt

Has anyone been on a DMP/IVA and then gone bankrupt if it dodnt work for them?

xxx

Thanks for your replies.

Sunnylooloo

Darnit what a great reply!

Tasha one thing I found, (before I spoke with CAB and National Debtline) that with a comapny Pay Plan in my case to do a DMP with them they set me a very unrealistic budge and there was no way I could ever follow it!! As Darnit has said with BR different things are allowed on your SOA - maybe post up your current SOA http://makingsenseofcards.co.uk/soacalc.html and people will advise what is allowed in BR (you could also post in the IVA board and see what the differences are)

I have ended up doing my own DMP with the help of National Debtline so I am in control and in the short term it is working for me.

As I have said before do speak to one of the charities and see what they have to say.

I think if you fail a DMP or IVA you can then go BR (but someone will confirm this) however I think with an IVA - they have to give you a notice that you have failed (or something - sorry not clear ont his but somone will confirm)

Hope that helps a little bit