Bankruptcy/IVA What should I do

Elstree20

Hi there I have been reading MSE for quite a while now and wondered if anybody could offer some advice on my situation.
My partner and I are in quite some debt ( more than £70K all unsecured) but to date have always been able to keep up to date with payments. I have worked hard and have been able to go up the corporate ladder and so my salary has always been ahead of outgoings. I have just been appointed a Director of the Company I work for . However now for the bad part as we all know interest rates are now increasing at an massive rate and well my salary will remain fixed for another year . It is rapidly getting to a stage where outgoings are exceeding incomings( We have cut back dramatically to the bare minimum of expenses). I have always maintained that we should pay the money back that was borrowed and not go down the IVA or BR route.

However after juggling funds for the better part of a year I am completly worn down and after recieving yet another letter today from MBNA this time informing me of a big rate increase . I have given serious thought to either an IVA or going bankrupt. Only problem is that in both cases as a Director I will lose my job which will only make things worse! Is there any other way I could try and sort this out??

Richard_S

Hi Elstree,

Have you thought about a DMP? It doesn't have such far reaching consequences as IVA or bankruptcy, although you will be commited to repaying the debt over a longer period of time. If you've got equity in your house it would also prevent having to confront the problems of Beneficial Interest if you were to declare bankruptcy.

You'd only have to resign your directorship for the period of time you were an undischarged bankrupt which could be as short as 6 months up to Automatic Discharge at 12 months. Would your company be prepared to accept your resignation prior to bankruptcy and for you to hold the position of "Director Designate" until you were discharged?

How much of the debt is joint and how much individual? If your partner has debt in his/her name only, then you could consider taking some of the pressure off by just your partner declaring bankruptcy.

Richard

Elstree20

Hi Again

No i had not given too much thought to a DMP as I was under the impression that it was much the same as an IVA. I would rather pay as much as possible off and don't mind if it takes a bit longer just as long as there is food in the house !!. Most of the debt is in my name unfortunatley.

I have not approached my company yet but I will make an appointment to see them and see what they say. Thanks for your help