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IVA or Bankruptcy
amyjaj
Posts: 106 Forumite
A couple of weeks ago I had an over the phone appointment, with a drafter to draft up my IVA Proposal. We went through my other choices and the only other choice over an IVA was bankruptcy. He thought bankruptcy was the better option for me rather than an IVA, but I didn't have the fee then. I received a draft of the proposal, with a cover letter, dated 28th May. The letter states that the creditors meeting will be held on the 13th June (tomorrow). A week after receiving this, I got a phone call to state that they hadn't received all the info (tenancy agreement, HB, CTR etc) I passed onto the initial IP. Today I had another over the phone appointment, similar to the last as they had received all the additional info. Again went through my choices. I have since raised enough to go bankrupt.
I have no assets, my flat is housing association, my car is motability. Would it be best to go bankrupt or go ahead with the IVA?
I have no assets, my flat is housing association, my car is motability. Would it be best to go bankrupt or go ahead with the IVA?
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Comments
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Hello there,
It's a big decision for sure. Bankruptcy is likely to be faster and cheaper. Both are insolvency options so will have a notable effect on your credit file. Both will cause your name to appear on the insolvency register - 1 year for bankruptcy, 5 or 6 (sometimes even longer) for an IVA.
We have a useful guide to all things insolvency here on our website.
In addition, please take time to read this great page from the truly excellent Debt Camel site:
http://debtcamel.co.uk/hard-choices/iva-vs-bankrutcy/
Really hope you find this useful,
Very best wishes,
David @ National Debtline.We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Confused, just got another phone call to say my IVA has been accepted by my creditors.0
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http://debtcamel.co.uk/wp-content/uploads/2013/06/Formal-debt-solutions.pdf
I found this very useful in making a decision.0 -
Oh that's fabulous, I've not come across that before.
Thanks!We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
National_Debtline wrote: »Oh that's fabulous, I've not come across that before.
Thanks!
I found it the most informative/easiest to understand website when considering my options.
I also took the flowchart with me to CAB when I went to discuss my options/request support with the process.0
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