Please Help ADVICE

steveado

Hello, Im in a bit of a tricky situation and needed some advice. I have a wife and child aged 7 and currently in a IVA 1 year in. I have 2 months left untill i leave the Army which means i have to move from the Army house. I currently pay £500 a month for IVA but i know my next job i wouldnt be able to pay this. By the time my rent deposit, house rent, and all living bills come out ill be lucky to have any money. Whilst i was in the IVA sometimes i got paid extra for being away from home and all went to the IVA which doesnt reduce my debt. Im due to get a lump some when i leave as part of early pension and this money would help us a few months but 50% is going to IVA and not reducing my debt which annoys me as i want to pay the debt. Any ways it has pushed me to think should i go bankrupt? and have a clean slate or are there other options as im thinking if i stay in my IVA im going to struggle to live. Will going bankrupt stop my security clearence?



My debt is £37,500




hope this makes sense and hope you can help.


regards
steve

Minkym00

Are you aware that if you take a lump sum out of your pension whilst bankrupt then the OR will claim it all? Also, if you take a lump within 3 years of discharge then it will be claimed on a sliding scale if you’re subject to an IPA.

steveado

thanks for reply no i wasnt aware. Im not fussed if they take it to repay some of my debt. Just wondering is it best i go bankrupt.

Flyright

You can't simply 'go bankrupt' if you are in an IVA. The IVA has to be formally failed by the IVA supervisor first.

wildheart83

To answer your original question, bankruptcy will not affect your security clearance. As above, your IVA will have to fail before you can apply for bankruptcy

mwarby

You do know if you go bankrupt it's very likely that none of your debt will be repaid, most if not all of what the insolvency service recover is used to fund the insolvency service

In both IVA (if it completed successfully)and bankruptcy at the end the debts are unenforceable and in effect wiped out, how much the creditors get doesn't come in to it