IVA or Bankruptcy

brokemummy123

So confused as to what to do. I owe £27,000. I’m a teacher who has handed in her notice as I can’t take the pressure any longer. I’m registering for supply teaching and have secured a permanent 1 day a week. This income is obviously as hoc, so I can’t prove regular income. I’ve done calculations that say I’m entitled to Universal Credit.
This will all come in to effect in January.

I don’t own my own home I rent, but I do have a reliable car that I will need to travel to schools. It’s valued at £3000. I’m still currently paying my mum back for it but I owe her 4500 for it as I’m paying her on a very informal basis. I know I won’t be able to continue this on an IVA, but in bankruptcy it will be taken anyway.

Plus side of IVA- get to keep car but can’t pay mum back for it. Down side- 6 years of payments.
Plus side of bankruptcy- £27,000 written off, fresh start. Down side- Lose the car, possible IPA.

Could anyone help me? I don’t want to contact IVA companies yet as I don’t want to be talked in to anything.

stevelo

BR for sure!!!!! they woont touch your car. 12 months and its a fresh start. I went br in may and only 4 months left,

luvchocolate

stevelo wrote: »

BR for sure!!!!! they woont touch your car. 12 months and its a fresh start. I went br in may and only 4 months left,

I have no experience on I.V.A so will leave that to someone else.
In BR you are a allowed a car up to the value of £1000.Your car would probably be sold and you are given £1000 to buy another.
Unfortunately you will not be able to continue paying your Mum back back as this will be a debt in your BR and written off, maybe you could repay her by providing a service to her if you are not working much.
I would advice you to contact one of the debt free charities I used Stepchange and they were very helpful.
Also read everything you can The Insolvency Service web site is a good start.
There will be a solution that works for you.
Just to add BR will show on your credit file for 6 years