IVA or BR?

djwmcnae82

Hi,
I am going to go and see some one very soon about this but wanted to get the general feel from people who have experianced this first hand.

I am currently struggling with debt which was left to me by an ex partner going BR, house selling for too little and me left as the sole person to collect all the debt.

I know I could do an IVA and be debt free in 6yrs but would struggle for the 6yrs (but it is do'able).
If I was to go BR then I would be debt free straight away and would not be struggling for 6 yrs.

Now my morals kind of say I should just pay for it as it is not a huge amount of debt (23k) and man up. But then the other par tof me thinks that this is not my debt (long story shortm ex partner didnt have to go GBR, did it to screw me over) so am thinking going BR is the easy option out.

Can any one suggest what difference going BR and doing an IVA there is?
Which on is easier to get a Mortgage on and how long after...
Do IVA's affect jobs?

Thank you in advance for your help.

philnicandamy

djwmcnae82 wrote: »

Hi,
I am going to go and see some one very soon about this but wanted to get the general feel from people who have experianced this first hand.

I am currently struggling with debt which was left to me by an ex partner going BR, house selling for too little and me left as the sole person to collect all the debt.

I know I could do an IVA and be debt free in 6yrs but would struggle for the 6yrs (but it is do'able).
If I was to go BR then I would be debt free straight away and would not be struggling for 6 yrs. true..BUT bank accounts credit etc will be very difficult to obtain after bankruptcy for 6yrs

Now my morals kind of say I should just pay for it as it is not a huge amount of debt (23k) and man up. But then the other par tof me thinks that this is not my debt (long story shortm ex partner didnt have to go GBR, did it to screw me over) so am thinking going BR is the easy option out. sadly its NOT the easy way out..its a last resort when everything else isnt an option

Can any one suggest what difference going BR and doing an IVA there is?
Which on is easier to get a Mortgage on and how long after...
Do IVA's affect jobs?

Thank you in advance for your help.

have a read here for some bits

https://forums.moneysavingexpert.com/discussion/1056083

and speak to one of the debt agencies asap

djwmcnae82

Thank you for your answer. So if in my shoes would you opt for an IVA every time?

philnicandamy

well an IVA is useful if you have assets to protect...they both have differences the allowances in bankruptcy are more than in an IVA. A fair few people here have struggled on IVAs then looked at bankruptcy as an option.

best to post on the IVA board here then that way you'll have both sides

djwmcnae82

ok thank you

Cissie1

Hi Just to share my experience My OH and I were in an IVA which we struggled with for four years and have just this week been made bankrupt. It was a hard desicion to make but It was the best for me and my family. We had a house which is going back to Northern Rock but we have already moved out and do not actually want the house. Like I said it was a hard decision but we feel it was the best for us and I actually wish we had done it from the start rather than the IVA but hindsight is a wonderful thing! We did have more debt than you though so it is definatley worth considering all your options.
xxx

djwmcnae82

Thank you Cissie.
What I am struggling with is the aftermath of going BR or taking an IVA.
As I have heard, doing an IVA 100% of surplus is taken for 5-6 yrs. In this time Credit rating is down any way so if try to get mortgage with new partner etc will struggle.
Going BR the OR takes 70% of surplus for 3 years, credit rating still low for 6yrs.

I wish I had a crystal ball and some one could just day, David do this!

But thanks again.

davidgmmafan

The allowances for BR are more generous than an IVA. As you state in an IVA you will be expected to contribute ALL of your surplus (after essentials) for five years. In bankruptcy it is 50-70% of any surpluse for three years. Both will screw up your credit file for six years.

I believe in bankruptcy if you surplus is less than £99 then you would have to pay nothing. Anything over than is 50-70%. The main issue with bankruptcy is the stigma you may feel, regarding jobs its fairly specific stuff like being a director or an MP, barristers and accountants too I believe. The sort of thing you'd expect really.

Also if you have significant assets they'll go the OR unless they decide they're not worth selling.

Get some free advice from CAB, National debtline or CCCS. They will give honest info, DON'T pay anyone for the same info they can give for free.

Its YOUR decision at the end of the day, so get all the facts and decide what is best for you.

djwmcnae82

Thanks David,
Am looking to go to CAB on thursday and see what they say.
I dont have any assests at all except a car thats only worth £700

Below is my SOA, as you can see it is not too bad and is managable for an IVA but thinking will be starting to save money straight away with a BR and the outgoing is over quicker.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 3
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1400
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 450
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 150
Road tax................................ 20
Car Insurance........................... 32
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 183
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 12
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1187

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 700
Other assets............................ 0
Total Assets............................ 700

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Vanquis CC.....................1469......66........0
Barclays Overdraft.............2289......100.......0
Barclays Platinum CC...........2840......32........0
Utility Warehouse..............300.......0.........0
Capital One CC.................204.......19........0
Fairview Housing...............18000.....0.........0
Fairview is £0 at the moment as they are not sure if they will try and take £500 a month or £120 a month. Either way will not help the matter.
Total unsecured debts..........25102.....217.......-

Monthly Budget Summary
Total monthly income.................... 1,400
Expenses (including HP & secured debts). 1,187
Available for debt repayments........... 213
Monthly UNsecured debt repayments....... 217
Amount short for making debt repayments. -4
Personal Balance Sheet Summary
Total assets (things you own)........... 700
Total HP & Secured debt................. -0
Total Unsecured debt.................... -25,102
Net Assets.............................. -24,402
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

tigerfeet2006

Who are the other adults in the household?

djwmcnae82

The parents, have had to move home to them. Rent through them for my room, gas electric, internet etc etc and the garage to store my stuff from the house that i once owned.