Bankruptcy or Iva

Hi all 
I’m after some advice, I have had a debt management plan for about 4 years and I’m about £34,500 in debt , I have recently contacted stepchange to discuss other options and and have been told my other options are an Iva or bankruptcy, I’m absolutely torn in deciding what to do. 
I have no assets only a car worth about £1300 which I would need as I work unsociable hours, would this be taken away from me in bankruptcy? 
I rent a property but if I ever had to move would I have issues being able to rent privately again? 
I have another issue which is I suffer from an eating disorder and and overeating related to other psychological issues(this is how it’s described on my medical records) also other digestive issues. 
my DMP budget has always allowed around £450 for household expenses (groceries and housekeeping )   for this reason. I’m a single person , I know this sounds high but it is what I spend ,  Would this be an issue with an iva or ipa in bankruptcy? 


  • MrFrugalFeverMrFrugalFever Forumite
    826 Posts
    500 Posts Second Anniversary Photogenic Name Dropper
    Do you mind sharing a bit more info, like a statement of affairs (aka Income & expenditure) or at least your income post-tax and creditors?

    any debt solution will leave your credit file in a poor state for 6 years (sometimes longer depending on the debt solution used). 

    Renting whilst in an IVA is fine and moving to another rented property is also fine, you may need to have a guarantor and it’s definitely wise to have a backup plan for where the upfront deposit etc will come from.

    your level of debt suggests an IVA may be a good course of action but without knowing your financials it’s hard for anyone to advise.
    Save £12k in 2023 challenge

    Jan = £715 / £1,000 Feb = £1,275 Mar = £400  (fallen behind will make up in April)
    Apr = £ May = £ Jun = £
    Jul = £ Aug = £ Sept = £
    Oct = £ Nov = £ Dec = £

    Saved Total = £1,990 / £12,000
  • Tulip18Tulip18 Forumite
    8 Posts
    First Anniversary First Post
    Hi MrFrugal 
    thank you for your reply , I will upload a SOA I’m just trying to work out how to do it

    thank you 
  • sourcratessourcrates Forumite
    26.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    IVA`s are mainly designed for those who cannot go bankrupt, because they own an asset such as a house.

    If you have no assets, then there is little benefit going down the IVA route, you may as well take bankruptcy, both will affect your credit file for 6 years, there's little point slogging away at an IVA when you don`t have to, bankruptcy you are discharged in 12 months, IVA it could be 6/7 years.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • Tulip18Tulip18 Forumite
    8 Posts
    First Anniversary First Post
    Thank you  so much for your reply, I have no assets only my car which is worth £1300, I do need a car with Working unsociable hours but I think they will make me sell it as it’s over £1000? 
    Also what happens with things like sky tv packages and mobile  contracts that you are tied into? My current sky package is £58 which covers landline satellite and broadband and my mobile phone contract is £64 plus £15 for my health watch. 
    I would more than likely have to pay into an ipa as I do have surplus income after my bills are paid but would the ipa payment be similar to the Iva payment or would it be more strict? 

    Thank you :) 

  • luvchocolateluvchocolate Forumite
    3.1K Posts
    Tenth Anniversary 1,000 Posts Name Dropper Home Insurance Hacker!
    Your car will be fine it's not worth them taking. Mine had a value of £1500 and was exempt. 
    The allowances for BR are quite generous but your mobile is a bit high. 
    If you have £20 surplus an I P A could be set up..this lasts for 3 years. 
    Pop your SOA on here and we can take a look 
  • Tulip18Tulip18 Forumite
    8 Posts
    First Anniversary First Post
    Thank you for you reply I really appreciate it, I’m not sure how to do the soa on here I will work it out and post it , thanks again :) 
  • ManyWaysManyWays Forumite
    99 Posts
    Third Anniversary 10 Posts
    In bankruptcy you are allowed a car worth £1000. but your car is in a grey area - the official receiver would be very unlikely to take it to sell it because they have to give you £1000 back to buy a cheaper car, but that would mean they make no money or even lose money after their costs are involved. So your car is probably safe  :)
  • Tulip18Tulip18 Forumite
    8 Posts
    First Anniversary First Post
    Thank you fingers crossed then :) 
  • fatbellyfatbelly Forumite
    18.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    A lower valuation on the car would be helpful. See what the low figure is on Parkers Guide and use that.

    If it's over £1500, ask us for more info
  • Tulip18Tulip18 Forumite
    8 Posts
    First Anniversary First Post
    Thank you, I have done that the lower figure is £1265 

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