They are not bought in line with an IVA if they were you yourself would be 33 down 3 to go instead of 33 down 27 to go, if your IVA fails you are back at the beginning you cannot allow your IVA to fail even if you are ill or lose your job, the main advantage with bankruptcy is not just the payments,are two years less it cannot fail, you only pay if you can afford to, you have the security of knowing your debt problems are bought to a conclusion whether you are ill or lose your job, that matters to alot of people surely
I meant the amounts, not the length of time. IVA payments have always taken all of the disposable income, BR was anything over £100 and not all of that. Now that it is anything over £20 then it is a lot fairer in my opinion.
To some people though, bankruptcy is not an option as they may lose their job because of that. I myself would possibly have to go to a misconduct hearing if that happened as the police force does not look kindly on anyone going bankrupt.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Very true Major -- but it's not for everybody. I, for instance, wish to honour my debts as much as I am able. It was my intention to repay the loans I took out but circumstances have conspired against me, so IVA is the best option to get my creditors a better return thab bankruptcy. Others will lose their jobs if the go BR. Horses for courses.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Spurs - I presume you had heard of bankruptcy before seeking professional debt advice? Maybe even googled for a bit of research before speaking to someone...and again afterwards to check them out and verify the info? As a grown up you are responsible for yourself! What stopped you asking about bankruptcy if you were interested in exploring that option??
I'm suprised that your IP did not discuss bankruptcy with you when they were first advising you about the various debt solutions available to you. There are many combinations of advantages and disadvantgages, but at the end of the day only those personal to you ought to have been taken into consideration.
Armed with the knowledge you now have, do you still feel that you made the right decision?
Just to answer The Major, I did not say they would be dismissed, although that is a possibility and they certainly won't be considered for promotion or sensitive positions whilst bankrupt, at least not in my force.
Spurs, sorry for hijacking the post somewhat and hope your question has been answered.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I wasn't interested that's why I never asked!! Mel I was just looking through my summary sheet and I noticed the dividend in bankruptcy is 19p in the pound as oppose to 57p in the pound in an IVA so I was just being a bit inquisitive anyway im pretty sure I have done the right thing.
That is reassuring to hear - but all persons in existing IVAs should be aware that they can change their minds and decide to go bankrupt at any time. Priorities change, and at the end of the day you do need to look after number one as well as managing your responsibilities.
The answer to your question really depends on how much you have been paying each month. If it is a relatively low amount such as £180, you will only have repaid £3600 in total. It is therefore highly possible that a large part of that money will be taken by the IP in consideration of their nominee fees. However, if you had been paying more for example £500 a month, you would have paid £10,000 and a significant amount of this should have been paid to your creditors.
I have a relatively high monthly payment and high dividend (92p). So, I assume if my IVA failed in year 3-4 I would have paid a large proportion of my debt back already.
So I woundnt be back to square one? I would only owe the remaining balance of my debt? And as such may find myself in a solvent position and work out a payment pay with creditors. Could they try to re-add interest over the term I had been paying into an IVA?
Last edited by mole on Wed Jan 19, 2011 7:16 pm, edited 1 time in total.
Hi
Yes I do believe that if the IVA fails companies can start to add interest and charges again, however I do not believe that it can be back dated, but may be corrected on this.
Regards
Mole - that's a high dividend. Do you mind me asking how much the debt was for, do you have equity in property and what thos 'high' monthly payments were pls ?
Generally if you have paid in more than 5 payments to the IVA, your IP will only be permitted to draw 15% of the balance leaving the rest being distributed to creditors.
