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sio1
Junior Member
173 Posts |
 Posted - 28 May 2008 : 09:44:38
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I Currently have an IVA which i am struggling to pay, i have no assets to speak of so would i be better off financially if i declared myself bankrupt?
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 28 May 2008 : 10:51:06
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Hi Sio1 and welcome to the forum.
In order to answer your question, I just need a little more detail ....
How much are you currently paying into the IVA per month? How long as the IVA been running? What is the total level of debt? Has something happened to make you struggle with the payments, ot have you always struggled?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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sio1
Junior Member
173 Posts |
Posted - 29 May 2008 : 14:40:54
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Hi Julian, thank you for your reply, Im in work at the moment so I dont have exact figures but I can tell you I pay £275 a month, the iva has been running for about 18 months and I have struggled from the beginning I have in the passed missed a few payments and have agreed that these be tagged on at the end so I have about 4 years left.
The total level of debt was around £17,000 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 29 May 2008 : 14:42:31
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Hi Sio1,
From the brief information you have provided, it looks like BR may be your best option. If you'd like to discuss it in more detail, please feel free to contact the helpline.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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leslie.p
Junior Member
United Kingdom
197 Posts |
Posted - 29 May 2008 : 15:51:42
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sio1, if you pay £275 x 60 months that equals £16500 your debt was only £17000 that is not a good deal.
do you know how much your iva company are charging you?
i.e nominee and supervisor.
i may be wrong in my thinking but what was the point in entering an iva to save £500. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 29 May 2008 : 16:41:04
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Hi Sio1,
Looking at Leslie's rough calculations, it's pretty obvious BR would be better for you.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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pix1
Average Member
689 Posts |
Posted - 29 May 2008 : 18:35:57
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| BR could be better but may depend on what you do for a living. If there is anything in your employment contract that says you must inform the employer of BR it may mean it might have an effect on your employment status. In BR your name would also be published in the Gazetter newspaper and would be viewable for all time - not so in an IVA - but this may not matter too much. Threre might also be other pitfallspitfalls in BR as opposed to IVA. |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 June 2008 : 10:10:48
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Hi Sio1,
If you do have any other questions, you can always call the helpline.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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sio1
Junior Member
173 Posts |
Posted - 02 June 2008 : 13:02:20
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| I will get all the info together about my iva and post further details |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 June 2008 : 13:21:42
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Hi Sio1,
Look forward to the info.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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sio1
Junior Member
173 Posts |
Posted - 04 June 2008 : 12:03:05
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Looking at my original proposal to creditors my original debt was 19,441
Nominee fee 2,100
Supervisor fees 3,300
bond and registration 129
vat 945
I initailly went through Accuma who passed me on to Wilson Phillips Insolvency Practitioners.
I started payments on July 2006
I was given a 'notice of breach' in Feb 2007
and after this i agreed to up my payments to 291 per month to catch up with arrears.
In Sept 2007 i received another 'notice of breach' upon this a agreed to return to paying 275 per month but for an extra 7 months.
This is how it stands at the moment but im continuing to struggle with payments and have fell behind yet again... |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 04 June 2008 : 13:07:28
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Hi sio1,
It does look like you are paying back more than your original debt.
As to your question of Bankruptcy this would depend on your income and expenditure, although Bankruptcy does tend to be more reasonable on the allowances for expenditure you could end up contributing to your debts via an Income Payment Order (IPA) if this is put in place although the monthly payment would be more affordable for you the payments would last for three years.
It would be a shame to pay into an IVA for two years only to have to enter Bankruptcy and pay for a further three years which is what the IVA term would have been.
It seems like you have discussed payment reductions with your supervisor, but I think you need to go through your whole income and expenditure again and maybe have the supervisor contact the creditors to change the proposal making it more affordable and allowing some level of discount against the total debt.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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better off financially in bankruptcy ?
