www.iva.co.uk

Hi again,

It is looking unlikely that I am going to be able to do an IVA as my disposable income would only be around £150 a month.

If I was to apply for bankruptcy other than the court fees would I have to pay any of my creditors back at any stage. Feel really bad about it but this now be my only option....

Lee

David Mond's firm do IVAs for disposable income as low as that. Why not give him a call.

Hi Lee,

If you did decide on bankruptcy, if your disposable income is over £100 per month you will have an Income Payment Order for three years. I believe the OR normally takes about 50% of any income over £100. This will go to your creditors.

Thanks Mel, Where can I find his details....

If you go to the expert link on the left hand side of the page, you will find him on there, and his contact details are on there,

Thanks Jan, an IVA sounds like a much better option if i can do this as going bankrupt does not really mean yuo start from fresh...

Its a mine field out there...

Well you do start afresh - you are usually discharged after 12 months, sometimes less, and you only pay for three years, not 5, but with an IVA, you have to opportunity to pay a lot more back to your creditors.

Both options will mean your credit rating is shot for 6 years.

If you are saying you only have £150 disposable income after your bills etc i would think it is highly unlikely you will be made to add extra funds to the BR and you could be discharged within 6 months and have a fresh start, you are allowed more vs an iva in allowances and living costs you need advise from the experts on which way to go.I haven`t heard of many iva`s getting proposed for £150 its usually no less than £250 and with the payment into the iva i would think there is a possibility you will be made to pay for 72 months and you will also be made to release equity in your home at a later stage if there is any
Have a look at this link it will give you an idea of how much cash you are likely to have left over its a list of expenditures usually allowed for in a BR
http://www.bankruptcyhelp.org.uk/forum/ ... PIC_ID=100


good luck

I know this sounds like a stupid question, but what is the discharge period? what does that mean exactly?

David Mond and I believe Payplan, have had IVA's accepted for less money a month, so it is worth a try.

Bankrupt's remain that usually for 12 months. Then you are discharged from your bankruptcy and your name will disappear from the Insolvency Register, and you will become a discharged bankrupt.

Thanks for clearing that up Jan!!! Bit of a novice when it comes to stuff like this.....

After the 6 years is your credit rating the same if you do either BR or an IVA... Would love to get a place of my own again at some point!!!!

After six years, then both drop off the radar.

You will then have to build your credit rating back up again.

My view is that creditors seem to treat IVA and bankruptcy as the same thing, (you are insolvent) they are both on your credit file for 6 years. I think IVAs can be the right thing in certain circumstances, to either protect a home or a job if necessary and it comes down to personal choice. Life in an IVA is a tight squeeze but so is bankruptcy, although the allowances can be more reasonable in bankruptcy. If you have an IPA to pay, (if you have over £100 surplus per month) this will last for 3 years, but after the OR has taken his costs out, I don't think the creditors would be left with much, if anything.

I really just do not know what is the best option, both seem to have pro's and con's!! I am so worried that if i make the wrong choice it could ruin me for life....

I may well contact David Mond to see what options there are for me!!

If i were to go bankrupt at the moment I only have about £35 of disposable income which I know the OR will not take, what happens if i received any commission payments, would they take all of it....???

I really don't know. I suppose it would depend on how much it was.

Give Paul Johns of Reviva a ring to ask about BR. His advice is free and he does know about bankruptcy. His details are under the expert link as well.