IVA should I or shouldn't I

sourcrates

motivated said:

Bankruptcy petrifies me if I’m honest.  It’s like someone else takes control of everything.  Bank account etc.   And yes I know we’ve made an absolute dogs dinner of it but it’s so scary and I suppose I’m a little naive and not sure exactly how it works.  

Hi,

Its deceptively easy these days to be fair, all the OR takes control of is your debts, your bank account is frozen temorarily, so you must make plans for such events, such as having ready cash to hand, but that won`t last long, and you can open another basic account straight away if you so wish.

You won`t really know your bankrupt to be honest, its not like the old days, no attendance in court, all done online, by post, and over the phone, life carries on pretty much as normal, after 12 months its done.

It`s certainly not without its downside, but it should be viewed as a new start, certainly not something to be feared, most people find the pressure goes away pretty quickly after pressing that send button.

fatbelly

motivated said:

No we’re council tenants fatbelly.   

Only just seen this answer. I'm still not used to have to bookmark everything.

IVAs and Bankruptcy are just two forms of insolvency. IVAs give you the chance to protect an asset, usually a house. If you don't need that then bankruptcy is hugely more simple. There is a fee - £680. If you have surplus income then you pay it for 36 months rather than 60. Your bankruptcy discharges after 12 rather than 60 months.

Bankruptcy can't really fail - lots of IVAs do

So if you have significant debts (over 20k), not enough income to pay them off in say 3-5 years and no asset to protect then it's a pretty obvious choice. What I'm saying is that you'd have to have a good reason NOT to go bankrupt.

OK, I've bokmarked now