Having over-extended myself I now need to decide between an IVA and bankruptcy.
It was all so easy - I had a fantastic credit rating and card companies fell over themselves to give me zero percent interest and kept increasing my credit limit.
Unfortunately, I had a spell of unemployment and the card companies response was to increase the interest rate. In one case to 30% (and its not a store card!) which equates to £500 a month. I've tried negotiating a repayment plan with them, but their response is that because I'm repaying other cards I can't afford the £200 a month they want, so I have to carry on trying to pay £500+ a month… I don't get their logic!
I'm now self employed (limited company), owe £83000 to 12 cards/banks and have about £500/£600 a month for payments. I don't own any property or things of value.
I've started my research and thought I'd get opinions here.
Hi and welcome
On paper bankruptcy will be the quickest and cost effective way to deal with your debt but you will not be able to continue as a company director.
An IVA should not impact on your directorship and will return more to your creditors
Have a chat with a couple of companies/experts and explore all your options
Regards
If you decide to petition you can still operate a sole trader. If you propose an IVA you would need to check the articles of association but your chosen IP will advise you how to do this.
As Andy says ring around and get some free advice.
An IVA may be cleaner and less distruptive to your business, and from what you say it seems as if you could afford to offer creditors a reasonable level of repayment.
