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Bankruptcy or IVA
ketsbaia32
Posts: 2 Newbie
Hi all, as a non homeowner and somebody with very few assets which one of these would be the best route for me to go down, i have had a quote for an IVA which is affordable but the length of time is concerning as i am not getting any younger and who knows what could happen to them health wise during a 5 or 6 year period i can provide more detail if anybody can help, i need to make a decision soon as this is all geting too much now i need my life back.
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Comments
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Bankruptcy.
If no assets to protect then although there is a £680 fee, bankruptcy works out cheaper because you have only to pay your surplus income for 36 rather than 60 months.
In addition if your circumstances worsen and you can't pay, an IVA fails. Bankruptcy can't fail. Discharged in one year.
How much is your car worth?
How much is the debt total?
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car is currently worth around 3000 and total debt is just under 150000
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You could be eligible for a DRO, although you may have to exchange your car for a cheaper one. Why not phone StepChange? They can help and advise which is the very best option for your circumstances. They helped me so much, I was in dire financial straits a few years ago and that's what they suggested for me. They also helped me to apply for and get one. They are not at all judgemental but very reassuring.ketsbaia32 said:car is currently worth around 3000 and total debt is just under 15000
It's a free phone call and you won't lose anything by having a chat. Or just have a look at their webpage. You won't regret it.
https://www.stepchange.org/
Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.2 -
Seems a shame to let a 3k car push you towards an IVA. The limit for cars in a DRO is just about to go up to 2k. AFAIK in bankruptcy it is still 1k maximum value The official valuation is done on Parkers Guide and t's free.ketsbaia32 said:car is currently worth around 3000 and total debt is just under 150001 -
Although the £1,000 snout bankruptcy is true, it’s not always handled that way. As I need a car for work my allowance in Bankruptcy was upped from £1,000 to £3,5001
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