am I better of being bankrupt?

[anthony.n]

I own nothing but a tv and a car worth £500 I hav an IVA of £16,000 am I better of being bankrupt?

[Adrian Ratcliffe]

Hi Anthony,
Yes you are who advised you to take an IVA out?
Your car will be safe in Bankruptcy so long as it was worth £499 if it was worth £500 then it would be seized.
Typically IVA's last 60 months you could be released from Bankruptcy in 12 months.

Regards
Adrian

[MelanieGiles]

That depends on what you mean by "better offf"! The majority of my clients would be paying less had they gone bankrupt, but that does not necessarily mean that they are better off. Most people want to pay their creditors, and that is why they enter into IVA's.

You are generally allowed to retain a car of up to £3,500 in value under bankruptcy proceedings, so long as you can justify keeping it for work purposes.

And whilst you could be discharged from bankruptcy after 12 months, you may have to make ongoing payments under an Income Payments Order or Agreement for up to three years.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[anthony.n]

I was advised about nine months ago to take the IVA! about 9k loans from bank, and a student loan, etc, i wasn't sure at the time and from what I read I should not have taken it! I only owed 16K and earn 18k a year and own nothing but my car which is worth £500 but I need it to get to work, the thing is I want to buy a house and it will take another 4yrs 3mth
to pay off the IVA I was advised by ICS North East Ltd

[MelanieGiles]

No one should have "advised" you to do an IVA - as practitioners we must merely be seen to provide details of all of the options which are available to you, allowing you to make a reasoned choice as to the way forward.

If you are struggling to make the payments into an IVA, I feel that buying a house may be something to put on hold for a while. have you dicussed your concerns with the IP who is currently acting for you?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
Out of interest how much are your monthly payments ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[welshman]

Unfortunately, the harsh truth is that a lot of people do get pushed into doing an IVA when it isn't suitable for them. I know in my case my IP didn't really try to persuade me in any way that it would be in my better interest to go bankrupt seeing as I had no assets. Six months down the line I failed the IVA as the payment was too much.

[accgroup]

To clarify an earlier post, "release" or discharge from bankruptcy is automatic after 12 months, in some cases a bankrupt may be released earlier than this at the discreation of the Official Receiver. If, however, you are subject to an Income Payments Order (IPO) or Income Payments Agreement (IPA), you may be required to make payments for up to 36 months after the IPO or IPA is made i.e. you will be required to make the payments after your discharge from bankruptcy.



AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[louiseh]

I thought student loans couldn't be written off by Bnakruptcy

[Chris.z]

Hi welshman what happened when you failed your IVA six mths in???

Chris

[welshman]

When my IVA failed in October I then waited until february and declared bankrupt

[Lapdog]

Just out of interest , what did you do about paying your creditors between October and February?

[welshman]

Nothing. It had to go three months for the IVA to fail which took me to January and then it wasn't long after that I went bankrupt. Student Loans company then get back in touch to pay off the rest of their loan