IVA instead of Bankruptcy

Legacy_user

I've just got off the phone with Business Debt Line who are saying that if I petition for bankruptcy, then the judge may well ask if I've looked at doing an IVA instead and that if I say 'no' (because I haven't) then he'll refuse the bankrptcy and send me away.

Anyone know how often this happens?

I'd pretty much discounted the idea of an IVA because to be honest they sound worse than bankruptcy!

Is an IVA something I should formally investigate before ringing the court for my appointment?

fermi

A judge is only going to refuse bankruptcy and point you towards an IVA if there is an overriding reason why an IVA would be in your better interests.

In practice that that is a pretty tiny % of cases.

I've been posting on here for nearly 5 years, and I can't recall it happening to anyone?

philnicandamy

Never heard of it happening either...

System

Thought as much, thanks for the info.

I think it's unlikely in my case as the incomings are less than the outgoings.

sarah222

Are you basing your outgoings on being more than you incomings on your current situation tho. Take out all non-priorty debt like credit cards, OD, arrears, etc and then is your outgoings more than your incomings if the answer is no then an IVA maybe possible. For an IVA you have to pay all priorty debts like mortgage, council tax, food, gas, electric etc (not arrears on gas/electric) and then what is left is considered disposable as IVA'able (not a word that but needed lol)

Ineedaname

To survive post debt management (BR, DRO, IVA, DMP) and without credit then income must always exceed outgoings.

Any IVA has set criteria about how much surplus must be available, BR doesn't.