Considering entering an IVA but not sure if this is the right thing to do.

jonesey1985

sourcrates said:

jonesey1985 said:

sourcrates said:

jonesey1985 said:

fatbelly said:

Interesting. No mention of a Debt Relief Order at all!

Erm.

A bankruptcy event is defined as “a bankruptcy order, a bankruptcy restriction order, a bankruptcy restriction undertaking or an equivalent event in any country or jurisdiction.”

I'd say a DRO is an "equivalent event."

I disagree, a BRO/BRU is a potential penalty of a Bankruptcy order if you fail to comply with an official receiver`s instructions.

This terminology is in regard to Bankruptcy alone, and a DRO is not Bankruptcy, it is different in every way possible.

There is no equivalent event to bankruptcy except sequestration in Scotland, which is most likely what the article refers too.

If you read the forward text it refers to Bankruptcy specifically, not DRO not IVA, just Bankruptcy.

I read it, and it absolutely does refer to IVAs.  It's your prerogative if you want to consider a DRO different, but your opinion isn't relevant, the ACCA's is.  And it's highly unlikely that "bankruptcy-lite" isn't considered an equivalent event to bankruptcy.

I`m not saying your wrong, that document was most likely written before the advent of the DRO which is why its not mentioned in particular.

Its likely a DRO would be viewed more along the lines of an IVA, than actual Bankruptcy, but either way, each case is determined on its individual merits.

DROs were introduced in 2007. That guidance was from 2013.  It's right there in the name of the file.

So either

1) The ACCA was asleep at the wheel for 6 years and had no idea that DROs were a thing (and still doesn't 8 years later despite being an accountancy body who know what insolvency is.)

or

2) They think that DROs are less serious than IVAs which require, at a minimum, notification of the event despite DROs being, as I said, a "lite" form of bankruptcy.

or 

3) Believe that a DRO is an equivalent event to bankruptcy, hence them not updating their guidance for 8 years.

I know what I'm putting my money on, and it ain't "DROs are not equivalent events to bankruptcy in the eyes of the ACCA."

sourcrates

OP would not qualify for a DRO anyway, not with 37k of debt, thanks Malmonroe for clearing that up.

Easy to get lost in the fog of a good argument.

MrFrugalFever

Hi Ukmum21.

First and foremost YOU are NOT a terrible person. You may have accumulated debt by means of buying unnecessary material possessions or many, many other reasons but this certainly doesn’t make you a terrible person.

i too had over £36k of debt and was in a very similar situation, it all got too much so I took the difficult step to pick up the phone and talk to a stranger about the intricacies of my financial well-being. It felt great and a relief of being able to just offload was enough to brighten my horizon. Like you, I felt that in no way could I mention to my family or friends about this situation, that was probably the biggest concern of all!

I cannot comment on the job front, although I would strongly suggest that any formal insolvency will have a direct impact on your employment and will highly likely need to be disclosed to your employer for them to make a decision as to whether you can continue the profession or not.

Whichever way you turn, your credit file is going to take a bit of a beating and realistically put the house purchase in jeopardy, but please don’t worry, what’s the rush and there’s always other opportunities down the line, especially when your credit report has a clean slate.

It took me approximately 18 months to truly change my mindset and financial outlook, it was incredibly difficult to do and without the restrictions of the IVA I’m not sure I would have made a big enough change to actually come out the other side better for it. Have a think about some life changes you can make to help get yourself back on track and certainly give that stranger a call at one of the debt charities as suggested by others!