So much debt :(

chameleon184

Difficult to write but here goes! I owe over £30k been given the IVA option but I want to payback what I owe. Starting with the small amounts to hopefully get to the large amounts but not even sure if possible, any tips? 

mwarby

Do you own your own home ? If not what attracts you to an IVA over bankruptcy ?

chameleon184

I’m renting so I don’t have any assets. Unsure if bankruptcy will effect current rent or any future rentals if we have to move

sourcrates

IVA can be a long, hard slog, both options will adversely affect your credit file, although in Bankruptcy you are normally discharged after one year, your credit file clean up can begin as early as that, in an IVA its 6 years before accounts can be marked as settled, a small, but important point.
Without a statement of affairs its not possible to comment on other options for you.

mwarby

chameleon184 said:

I’m renting so I don’t have any assets. Unsure if bankruptcy will effect current rent or any future rentals if we have to move

Arguably for your current rent your landlord should be pleased as it stabilises your finances, which safeguards the rent somewhat. Also if you’ve been a good tenant the landlord should want to keep you(it costs to get a new tenant, who may turn out give a pain). Also unless you have rent arrears it’s unlikely your landlord would be told.

I had a short IVA (6 months) myself, when I relocated a few years later I found most letting agents viewed it the same way as bankruptcy, almost all wanted a guarantor (which I was luck enough to have)

I’d suggest rent wise there’s nothing in it

mwarby

The other big thing re wether bankruptcy maybe suitable is your profession, you might want to research the restrictions this may place on you(although it’s often only when your undischarged which is a year)

you might also want to put up a SOA https://www.stoozing.com/soa.php

thevdm

If you truly want to pay back what you owe (and of course if you are able to manage), pay the minimum on all and pile every penny spare into the smallest debt, once that's cleared pay it all the the next smallest and so on.

Don't make yourself stuggle if your only concern is banks loosing out. I'm sure they will still be able to pay the top people their £multi-million bonus at the end of the year.

As others have said a SoA would help guide you into the most suitable direction. Personally, after no end of research I can only find one reason that an IVA is better than bankruptcy, that is if you work in a field that requires you have never been bankrupt (some still shun an IVA too).