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markss
Starting Member
United Kingdom
13 Posts |
 Posted - 11 April 2010 : 23:18:04
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| I have heard that a BR can work out with less payments being made than a IVA agreement. Would that be true? IVA can be more stringent. |
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debtinfo
forum expert
2826 Posts |
Posted - 12 April 2010 : 08:44:07
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| you will nearly always pay less for a shorter period of time in a bankruptcy rather than an IVA. of course there are other consequences to consider |
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sjbyron
Average Member
United Kingdom
746 Posts |
Posted - 12 April 2010 : 09:19:50
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Hi
An IVA is a form of insolvency like BR, but unlike BR you would be able to keep some assets such as a car and the house but would have to release some funds later into the agreement.
An IVA allows you to pay some debts off, and the remainding % is then cleared.
Both damage your credit record for 6 years
Bankruptcy lasts a year, and 3 years for an IPA/O if you get one whereas an IVA can last upto 7 years
IVAs are more suitable to those who have assets, have sensitive jobs and dont want the fact of their debt issues publicised
IVAs demand all disposable income, and youroutgoings are watched closely by a insolvency practitioner.
Bankruptcy demands 75% of disposable income and your OR can request income and expenditure details and bank statements when he/she wishes
IVA allows you to open the majority of basic accounts out on the market whereas with Bankruptcy you only have limited options.
Hope that answers the question
Best of luck
Stu J Byron |
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debtinfo
forum expert
2826 Posts |
Posted - 12 April 2010 : 09:35:31
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Bankruptcy is not quite 75% of disposable income, if you have less than £100 disposable income you pay nothing (although if considering an IPA you probably have more) If you have more than £100 pm spare it is a sliding scale of between 50 and 70% depending on the amount of disposable income.
In terms of publicity after the rules change last year, unless you have done something vary naughty then the methods of publicity are much the same for bankruptcy and IVA's these days.
Apart from the moral issue of wanting to pay back as much as you can then IVA's are most suitable for people with large amounts of equity in a property or people who have a job that would specifically be affected by bankruptcy, You can usually find this out by looking at your employment contract or putting an annonomus call into you HR department
I should point out that the main disadvantage of an IVA is that it can fail at any point. Although if you have a change in circumstances it is in theory possible to renegotiate with your creditors in practice about 1 in 3 fail during there course because creditors do not accept changes (or because the debtor chnages their mind) |
Edited by - debtinfo on 12 April 2010 09:38:18 |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 12 April 2010 : 11:41:14
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Mark
every ones circumstances is different and the direction to take will depend on your whole situation. Job, Age, finances, investments, pensions equity in house, family composition, future ambitions etc
BR and IVA are not the only two options, speak to a couple of the experts on either forum, explaining or emailing your full situation, they should then be able to provide a breakdown of your options.
when i first got into difficulty, I was against bankruptcy but when all the options where properly explored I started on a small DMP and then some many months later I pettioned for BR.
I used the services of Paul and his team at Reviva, they helped me through the whole process.
I wish you luck through the process
regards Richard
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 12 April 2010 : 13:53:47
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I would recommend speaking to an Insolvency Practitioner who will be able to advise you of your options. Have a look on www.iva.com where you can find the details and read reviews of companies.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
33 IPA payments made, 3 to go - the end is in sight! |
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IVA VERSUS br
