How does bankcruptcy affects the future?

[mgf]

Hi all,

Reading on, it sounds like doing bankcrupcy is easy.

I have IVA, this is a joint account, I owed about 6,000 and my husband about 36,000. It's been over a year since we signed an IVA agreement. My husband doesn't worry about it as I am always dealing with the matter. I have thought about going bankcruptcy, how this will affect our future in terms of getting new job?
My husband is a postie and with so many things going in Royal Mail he have offered to volunteer for redundancy.
I am planning to go back to collge and take AAT. Will this affect my future?

At the moment I am a full time mother with 5 kids, my eldest is 7.


Regards,

Maria

[pippa]

Hi mgf

Although the process of petitioning for BR is simple, BR in itself is not easy. It is a really hard desicion to make. You still have to answer for debts, If you have any assets such as equity in your home, cars etc these may be lost.
BR can also restrict you from taking up or remaining in certain professions.
I can only suggest you seek advice from your IP.

Good luck

Pippa

[mgf]

Pippa,

Thank you.

Regards,

Maria

[mish1953]

Hi MGF
as Pippa said .. going BR is easy.. being BR is not .

Do you have your own house... if there is any equity in it you coule lose it.. I am

Any assets - car etc - you could lose that too.

Bank account - cant get a 'proper' bank account , no cheque books or debit cards

Have some surplus income after your expenditure.. some of that is going to go to the receiver

Becasue of the stigma associated with BR and beleive me its still there , you can have all sorts of fun with utility companies, banks, etc . Virtually impossible to rent a house on the private market .

Something you need to think really hard about .. it really is the last resort.

Mish

[Skippy]

I went BR nearly 5 months ago, and it was the best thing I could have done as I couldn't afford to live on my IVA. However, it wasn't an easy decision and I don't think I will relax completely until the day I'm discharged.

Although it's a relief to have enough money to live on (more than I did in an IVA) and not have to worry about creditors, payments etc, things still seem to happen to make me worry - the letter I received yesterday for example saying my IPA might be reassessed.

Also, for the rest of my life if I am asked if I have ever been bankrupt I will have to answer yes - I will always be a 'discharged bankrupt'. This will affect any interest rates I am offered. Don't get me wrong, I don't want credit cards or anything like that again, but I will need a new car, and I might want a mortgage.

I don't want to paint a black picture of BR - I needed to do it as there was nothing else I could do. My IVA couldn't be varied and I know I couldn't have lived like that for 5 years - borrowing money each month to make up the shortfall. As Mish said, BR is the last resort.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[MelanieGiles]

Why on earth were you put into an IVA where you only owe £6,000? Madness!

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

[mgf]

Hi mish, pippa,and skippy,

Thank you for sharing your experiences and your sound advices.

We are renting a property from association, with an option to buy later. My husband's car he bought it privately,from his mate.

I did have a good thought, and I am almost half way my IVA. So I guest I just have to carry on and finish the hurdle.

Thanks Guys!

Melanie,

I suppose it is laughable. I know! But that time, I was only paying minimum payment each month and then when i missed a day then i have to pay penalty and I had enough. Plus, my husband was doing debt management but he didn't include all his debt so still received letter from creditors for payments and legal actions.

I suppose I could have just contact the creditors directly instead of doing IVA, but it seems that when someone doing it for you seems right as they have the knowledge until you read those small letters printed on the contract.

I do appreciate all your heartfelt advice. THANK YOU!

Regards,

Maria