IVA or Bankruptcy?

jinny103

My son has a debt of £12000 on two credit cards which is a small part of a £50,000 debt. He is only making minimum payments on these as the rest of his income is paying other loans so this is making no impact on the card debts. He applied for balance transfers (3) but was refused . He went to CAB for advice and was told an IVA may be possible. However on paper it looks as if he is coping as he is not in arrears or missed a payment and his only outgoings are his rent (which includes all bills ) and his living expenses, but he has to borrow from family to see him through the month. He has now been told an IVA may not be an option and would he consider bankruptcy? He is awaiting appointment with debt counsellor. Has anybody any ideas please?

fermi

He is doing the right thing in seeing a 'debt councillor' (I presume that is with CAB as well?). It's really only with a proper in depth discussion examining his current position, his options to deal with it, and the future implications of different courses of action that the best choice for a way forward will be made.

There are further free charitable advice services in my signature that may be able to provide him with further advice/help.

There is also a sub-board here dedicated to bankruptcy, so feel free to ask questions about this option there as well as here:

Bankruptcy & Living With It

It sounds as if he is getting the help and support he needs from his family, which believe me makes the world of difference.

I hope he can find a solution whether that is bankruptcy, an IVA, or less drastic measures such as a DMP.