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rag33
Starting Member
3 Posts |
 Posted - 07 January 2010 : 10:12:22
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Hello
I'm new to the forum though have been reading posts and advice for a while.
We are considering BR as we have 38,000 of unsecured debt and only around £95 per month leftover after 'priority' debts. I have been considering an IVA too but want to get all options.
I have been trying to find out information about allowances to see if the amount we spend would be considered reasonable but am having difficulty as we have 4 children and most of the info gives a maximum of 2 adults and 2 children.
Does anyone know how to go about getting information on allowances for 2adults 4children?
Also, I wonder what the long term effects are of BR vs IVA. Is the IVA really less 'bad' iykwim than BR? Or are the long term effects similar for both? I am just thinking that as we rent and will probably move in the next couple of years will being BR impact that? If we want to get a mortgage in the future is an IVA better than BR? That kind of thing.
Thank you for all your help
R |
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rag33
Starting Member
3 Posts |
Posted - 07 January 2010 : 10:13:33
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| Oh, my dh is a self employed sole trader so don't know if that makes any difference with BR vs IVA. |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 07 January 2010 : 11:28:52
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You should put down the allowances as what you spend i.e. the amount you spend on food, clothes, etc.
The main difference between an IVA and BR is that an IVA will last for 5 yrs but BR will last for the rest of your life. Even when have been discharged from BR you would still have to tell any potential creditors that you have been BR if they ask you. Practically all mortgage providers will ask whether you have been BR so this will affect any future mortgage. That isn't to say that you won't be able to get a mortgage in the future but it may mean that you would need a higher deposit and possible pay a higher interest rate.
If you are unsure of whether you should opt for an IVA or BR then speak to the CAB, CCCS or National Debtline and they will be able to provide you with free advice. |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 07 January 2010 : 14:03:02
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Hi rag 33
whilst you are doing you research I would suggest contact Paul at reviva, an IVA and BR are not the only options ! (although the most common)
The team at Reviva helped a friend of mine with similar circumstances but greater unsecured debt, they did not end up with BR or IVA, It really helped them with their situation.
good luck regards Richard |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 07 January 2010 : 20:09:48
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I would recommend that you take advice from 2 or 3 experts. You can find the details of the experts who post on this forum in the experts section, or else have a look at www.iva.com. You will be able to find the details and reviews of many insolvency practitioners, who will be able to talk through all your options.
Regarding declaring BR or an IVA, gettingoutofdebt is right that you have to declare BR if asked. However, the same things applies to an IVA - some companies now ask whether you have entered into an agreement with your creditors, and again you would have to answer yes.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
30 IPA payments made, 6 to go - the end is in sight! |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 07 January 2010 : 20:15:59
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I agree with Skippy and gettingoutofdebt.
Just to point out as well that if you do decide an IVA is the solution for you both, your partner,as a self employed person will have to have a face to face interview with your chosen IP.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Jan
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 08 January 2010 : 07:05:06
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quote:
Originally posted by Skippy13
Regarding declaring BR or an IVA, gettingoutofdebt is right that you have to declare BR if asked. However, the same things applies to an IVA - some companies now ask whether you have entered into an agreement with your creditors, and again you would have to answer yes.
Hi Skippy,
Does this mean that once the IVA is completed potential creditors can still ask if a person has at any point entered into an agreement with their creditors? |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 08 January 2010 : 12:09:44
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Apparently more banks are asking about an agreement with creditors, rather than specifically mentioning BR.
I presume that the fact more and more people are entering an IVA means that they want to cover all the options.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
30 IPA payments made, 6 to go - the end is in sight! |
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gettingoutofdebt
forum expert
2418 Posts |
Posted - 08 January 2010 : 12:45:12
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That's pretty cr*ppy. I always thought one of the advantages of an IVA over BR is that once you had completed the 5 yr repayments you were clear of your debts and the problems you had with the repayments were forgotten as the creditors agree to the IVA repayment amounts.
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 08 January 2010 : 13:19:27
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The same as BR, you only have to declare the IVA if you are asked. If the question was just about BR you wouldn't have to mention the IVA.
It all depends on how it's worded.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
30 IPA payments made, 6 to go - the end is in sight! |
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