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chrisa
Starting Member
1 Posts |
 Posted - 15 November 2008 : 20:39:15
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| I do not know what is the best solution for me - and IVA, or bankruptcy. I take home about £1700 a month, and i owe about £60,000 on credit cards and unsecured loans. I can pay about £500 per month to creditors. But i have no home, or car, or significant assets that would be seized. |
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jwmc77
Junior Member
United Kingdom
195 Posts |
Posted - 15 November 2008 : 23:25:38
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hi chrisa, im no expert but, if you have no assets it may be a better idea to declare bankruptcy....bare in mind if you take on an iva at £500 p/m, it going to take 10 years to pay the £60000 back...thats assuming that all interest stops!
bankruptcy, although a harsh alternative, you will be debt free in 6! also any payment order you recieve will only last for 6 years...on the downside, your credit reting will be ruined but, i believe an iva would also severely damage your credit file...thats my view anyway, im sure someone with more experience will be along shortly to give more advice.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 November 2008 : 03:23:47
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Hi Chrisa and welcome to the forum
In an IVA all of your disposable income would be used to service the IVA and this would usually last for 5 years. Therefore if you have £500 disposable then you would repay £30,000. Interest would stop and you would have protection from your creditors.
There are voting issues and other requirements for an IVA but in principle your repayment would be sufficient to make that a viable option.
Debt Management , another option , would last for 10 years if the interest was frozen and would offer no protection from creditor action while you made the repayments.
Bankruptcy would last for 12 months, however you would be required to make a contribution towards your debts by an Income Payment Agreement. In this situation you are likely to repay £350 per month for 3 years.
There are different impacts upon your credit file and additionally some people really want to try to repay as much as possible if not all of the debt.
For more accurate figures I would recommend you speak to a s[ecialist who could go through each option so you fully understand the implications - both personal and financial.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
For a Free Impartial Review before taking the leap call me @ Reviva UK
www.revivauk.com |
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IVA, or bankruptcy
