An IVA will hit your credit score just as hard as bankruptcy, a DMP will also ruin your credit file.
After 6 years it will disappear from your file and when asked if you were ever made bankrupt and if you said no there would be no record of it to prove you wrong.
Bankruptcy is a last resort though and if you can find a way to repay the debts then great, but speak to an independent person that would not benefit from your debt and I think you will be surprised in what they recommend.
Some creditors purchase historic records of the online insolvency register so can go back more than six years
The answer is to explore all options in detail, sometimes bankruptcy is the best option but you do have to think carefully. Many people I speak to do not realise that you have to pay your disposable income into bankruptcy for a three year period
Hi Sophie - do you have no close family members you could confide in who may be able to lend you the money to propose a lump sum IVA - depending on how much the creditors would get back over a 5 year period, proposing a lump sum they would receive up front may be preferable - i went down this route in 2009 and borrowed money off my parents (shamefaced I might add) and it has meant i havent had any monthly payments to meet since then - i had to pay my parents back of course, and the IVA still stays on your credit file for the full 6 years, but if you are planning on extending your family it might be preferable to have no monthly payments. £11000 isnt a lot to owe in the grand scheme of things, and based on £150 a month you would pay back £9000 of this over 5 years, so an up front payment of less than £9000 may be accepted.
No, none of my family have any money. I have my proposal phone call in 10 minutes. I think I just have jitters because I don't want to admit to myself. I know there are people with a lot more debt than my self but I am currently using my credit card to live from and only making minimum payments- I wish I had been educated more about money and credit! But I feel that as I am still quite young at 23 if I do this now by the time I'm 30 I should have built my credit score back up and be more aware of finances and have he rest of my life to live debt free- if I don't take an Iva then it will be longer due to my high interest rates and only managing minimum payments! I am scared... But I have a daughter and I need to be able to provide for her. I feel ashamed of my self but I think I can say is be happy never to see another credit cars again, do not require an overdraft- seriously not a good thing! And as for store cards if I need new clothes etc then I'll save money to get them!!
I'm already half way there to getting my Iva so I'm not turning back !
Have a discussion about a debt relief order with your adviser and perhaps get a second opinion from the C.A.B. who are independent of the banks. It may be the correct option and is for those who have no assets, debts of less than £15,000 and a surplus income of less than £50. While you may think you have a surplus of £150 this could include some of your partner's income and perhaps you would qualify.
Hi Michael, just been through my proposal and was told to offer creditors £170 taking into account my partner etc. Feeling quite positive now. I know we can afford that it's about half of what I'm paying currently so I hope i get accepted, just have to wait for proposal then send back and then wait for creditors meeting!
