IVA vs bankruptcy

Contracts_Engineer

Please help

If we were to go bankrupt my assetts would be an 8 year old astra (which has hit the side of a bridge - i joke not) a 42inch plasma, surround sound, a three seater leather recliner, a desktop pc and peripherals. Thats all i can think of that could sell.

If creditors accept an iva on the basis that they will get more money out of you that way rather than making you bankrupt, surely that would put someone like myself in a stronger position.

We rent so have no mortgage or house to lose and like i said, our assetts are a minimum.

Please help

Paulgonnabedebtfree

Contracts_Engineer wrote: »

Please help

If we were to go bankrupt my assetts would be an 8 year old astra (which has hit the side of a bridge - i joke not) a 42inch plasma, surround sound, a three seater leather recliner, a desktop pc and peripherals. Thats all i can think of that could sell.

If creditors accept an iva on the basis that they will get more money out of you that way rather than making you bankrupt, surely that would put someone like myself in a stronger position.

We rent so have no mortgage or house to lose and like i said, our assetts are a minimum.

Please help

So why are you considering an IVA then?

themull1

Personally, if you were never wanting to get on the property ladder, and didn't have assets, i would go bankrupt.

Contracts_Engineer

of course i am wanting to get on the property ladder. Bankruptcy, irrelevant of whether its the right thing to do or not, is not an option for me.

Can anyone actually answer the question ive asked please?

debtinfo

i cant see the question you have actually asked

Contracts_Engineer

ill try again

If you are not going bankrupt but you are going for an iva and you have few to little comodoties, does this put you in a better position for an iva e.g. your creditors can see you have little in the term of assets and making you bankrupt would mean less money for them, thus putting you in a better bargaining position for the iva.

Or does it make no difference and the iva companies work to a set budget list with only small deviations from their list?

debtinfo

It does not really make a difference, it is the creditors that have to vote to accept and they all have there own criteria, there are lots of examples where creditors have not accepted an IVA forcing someone into bankruptcy where they get less

debtinfo

just to add, if you think about it, if it worked like you were asking you could look at it from the other side, ie Since you are very reluctant to go bankrupt that could put the creditors in a better position o squeeze every last penney out of you because they know you wont go bankrupt

jamesd

Yes, a lack of assets makes going for bankruptcy less attractive to creditors. Yes, sale of assets of minimal value is less attractive financially to a creditor than an ongoing stream of payments that may recover more money.

It still may not prevent it and they are at liberty to go with bankruptcy rather than IVA whether you want to avoid it or not.

Contracts_Engineer

thank you very much to Debtinfo and jamesd who have answered my question perfectly.

Thanks you very much for your time and sorry if my question wasnt very clear.

Cheers

debtinfo

not at all, feel free to ask as much as you like, at the end of the day it is you that faces the consequences of any action so you need to be 100% sure of what you are doing before you agree to anything

Good luck