IVA v BR

[animaleyes76]

Just a quick query really to what people's general thoughts are on this.

I owed about 38k and went into an IVA paying about £374 p/m. My friend owed about 20k and went bankrupt without ever having to make a single nominal payment.

Apart from the stigma (which i think is hardly there anymore) of BR what makes people pick IVA over BR. Obviously I mean people that have no assets etc to lose in BR etc

The reason i say this is my mate is now discharged after a year and can apply for credit again (good or bad thing lol) and effectively paid nothing for the financial problems he caused himself.. This just seems SOOO wrong.

I went IVA route mainly because of my job (security clearance required) and because I generally believe i should try to pay back as much as i can.

Part of me just feels a mug when clearly I could have got away with paying less, a lot less if anything. I just would have probably had a lower paid job although you could argue my net income would be higher as no iva... ...

I know i'm doing the right thing.. but life is tough sometimes in an IVA hey
(

[MelanieGiles]

I think that main reason that people choose an IVA over bankruptcy, is that they feel a sense of responsibility to the creditors to repay monies that were lent to them in good faith. There are of course other reasons such as protecting assets or employment, but generally the clients I deal with really do want to pay back as much as they can over a realistic timescale.

[animaleyes76]

that's pretty much why i did to be fair. I was brought up to pay back what i borrowed (god i sound old lol)

it just seems wrong that you can go bankrupt, pay nothing and then get credit after a year. If anything you should be barred from credit longer than people in iva's

[Skippy]

I really can't see anyone being able to get credit after a year, especially with the way things are going. If they do, I would imagine that it would be at an astronomic APR.

[chris.g]

Personally, I feel that br is the option left when you are in a position where you can not pay back your creditors. In our case, due to hubby's unemployment we found ourselves overwhelmed by our debts and had no other option as we had no disposable income. There will always be the people who credit without ever intending on paying it back and exploit the br laws but I think br is the only solution for some, a lot on this site included. I would be VERY surprised if your friend can get credit again after only 1yr. Credit history is usually trashed for 6yr.

IVA's are ideal if you are in a position to pay back at least part of your creditor but seem, as in your case, very hard going sometimes. [:(]

[animaleyes76]

That's why i was surprised. Barclays have offered him their standard credit card (which he now has in his posession)

Crazy.

[chris.g]

At the risk of sounding like Victor Meldrew.....I CAN'T BELIEVE IT!!! [:0][:0]
More fool Barclay's though!!

[animaleyes76]

lol.

me neither. Madness, especially as the credit limit was £2500!

Oh well 42 more payments for me to go! So glad i found this site. Found by complete accident as well. Might keep me sane during those nightmare depressing moments you can get whilst in an IVA hey lol

[chris.g]

Well, if it doesn't keep you sane at least you'll go nuts laughing!!!
keep smiling
xx

[sjw]

a lot of people those the br route because the iva route is not available to them not because the are getting out of paying their debts and if they could afford any payments the or would require them to pay what ever they could afford for 3 years in br. x

[lily]

You have to have a certain level of disposable income to enter an IVA. I dont think there are many people who are laughing all the way to the BR court either. I was only a few days away and I was scared stupid. Its wrong to believe that people who go BR are better off, it is the last resort and the only option available to many. A lot also depends on your circumstances, a single, well paid person who can afford IVA payments against a family who's needs will change throughout the duration might see things differently. There are no amount of variables to take into consideration here. For the vast majority of people, debt will equal a great deal of stress and whichever method they choose to address it, its the right one for them. Only a fool would rush straight back into a life of plastic.

[Moneystinks]

Well said as usual lily - I agree only a fool would rush back. Whatever happens to us we are going to save paperwork etc and show our son exactly what happened to us.....

If I could bottle the feeling and give him alittle when he is older I would as a warning - this position we are in is awful!![:(][:(]

This site is a god send[:)]

[pippa]

The decision to go BR is one of the hardest that anyone can have to make. for each of us that has taken this route we have all 'paid' in one way or another.
It certainly isnt taken lightly, and i think it is unfair to assume BR is an escape route.
We all seek a solution to a similar problem and the vast majority want to do the right thing and pay back as much as we can. However the choice of an IVA is sometimes taken away due lack of surplus income or creditor rejection leaving BR as the only option.


Pippa

[Maz]

I have often wondered the same myself; this IVA vs BR, but now being in an IVA for 8 months I thought it was the ideal option even though I have no assets to speak of. I am still earning a reasonable income to pay back my debts over a period of time. If at the time I had these horrible debts and lost my job then I think BR would have been the only option available to me.

Maz

oh dear over another 4 years to go but so far I'm surviving!!