Whats better? TVA or bankruptcy??

alwaysskint96

Someone close to me has severe financial problems and in total owes appx 15k

He spoke to someone from payplan today and they are suggesting either an IVA or bankruptcy?

What are the advantages of an IVA over bankruptcy?

MicheH

Does your friend have property with equity in it?

Look here for IVA facts from the national debtline. A free impartial debt charity. I used these myself

http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts#table4

and here for bankruptcy info

http://www.nationaldebtline.co.uk/england_wales/page.php?page=35_options_for_dealing_with_your_debts#table5

alwaysskint96

Nope no property, no car, full time employee

Will look at links thanks

SouthCoast

alwaysskint96 wrote: »

Nope no property, no car, full time employee

Will look at links thanks

With no assets to protect then bankruptcy would be the better option.

philnicandamy

before ANY decision is made you need to speak to cccs.co.uk or nationaldebtline.co.uk or see someone at your local c.a.b

alwaysskint96

Are payplan no good then? Im told that they said he has £87 lefit each month after expenses but if his wife earned more he could then pay £100 a month over 5 years

This also took into account child benefit and tax credit which his wife gets

MicheH

It seems to me there's a tiny margin here. The surplus isn't great, and 'if' earned more is worring. If the IVA fails then bankruptcy is inevitable anyway.

For a debt management company payplan is the one I hear of most of all but the real question is, is an IVA a correct for the circumstances. The only real way you'll know that is if your friend calls a free and impartial debt charity like stated above.

A surplus of £87 a month when taking into account CB and tax credits is extremely tight. Could your friend live like that for years? The amount you're 'allowed' to live on in bankruptcy is much more generous.

You really need to ask your mate to call for that free impartial advice. I know he'sspoken to payplan but they're a debt management company. They say they're free but I have a feeling I know where their funding comes from. Personally I would not take their word as gospel.