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mkeane16
Junior Member
United Kingdom
170 Posts |
 Posted - 03 March 2008 : 20:37:41
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Hi, i have just had a call off a company called 'UK Bankruptcy Ltd', apparantly they got my details off the 'IVA Council', to give you a bit of background....
had debts of 22k, single with 4 year old daughter, no assets, renting, working part time 16 hours / tax credits. this time last year, my debts had spiralled out of control, i was trying to get one loan to pay off everything but because i had missed two payments it was difficult, company called 'Freeman Jones' came to the rescue (or so i thought), i had my own personal IP and we came to the conc that an IVA was the best route, i currently pay and have been paying £200 per month for last 10 months with no problems, i understand that i am tied for next 5years paying this and even after completion it will remain on my file for sometime,. everything seemed to go well, until i had a letter from 'The IVA Council' saying that i have been misold my IVA and that i can reclaim back what i have paid etc etc,. i have just come off the phone from 'uk Bankruptcy Ltd' saying that basically my IVA is a form of bankruptcy and will stay on my file for 6 years once completed whereas bankruptcy means that i wont have to pay anymore of my IVA and by applying to court can clear my debts and have bankruptcy wiped off my file in a year from the court date? i really am confused now, i know that Freeman Jones are taking their cut out of what i pay but at least i am trying to clear what i owe? but now this bankruptcy sounds better, this company want a fee of £1050 payable over 5 months? has anyone used this company or can advise if this is the best solution? thanks.
karen |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 March 2008 : 12:11:05
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Hi Karen,
Firstly be very carefull. The IVA Council are no more than a marketing operation for UK Bankruptcy.
It is not a question of being mis-sold an IVA .... if it is working for you and you are happy then stick with it!
The information you have been given is incorrect. An IVA will stay on your credit file for six years from the date your IVA was set up, so it will only remain on your credit file for a further year after the completion of your IVA.
Bankruptcy will also remain on your credit file for six years, and as both entries are of an adverse nature, it is arguable whether there is any difference between the two.
The issue in hand is if you would be better suited in Bankruptcy. As you have no assets and are in rented accomodation, I think you would.
In an IVA, the creditors tend to take the whole of your disposable income and leave very little for living costs, whereas in bankrupcty, the allowances for living costs are much more realistic. Therefore, you would likley have nothing to pay into your bankruptcy and would be discharged after one year rather than having to pay £200 for five years.
With no assets, you are more than capable of declaring your own bankrupcty without the need for paying a fee. Please note that the court will charge a fee of £485 ... however the likelihood is that this would still need to be paid if you were to pay UK Bankrupcty Ltd. |
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Confused - pls help!
