Author Topic: failed IVA what next??  (Read 1903 times)

jacketpotato

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failed IVA what next??
« on: Oct 17, 2012, 10:35:16 PM »
My IVA failed recently receiving the termination letter in the last few weeks.


A Family member is looking to possibly help me out by putting forward approx 50% of what I owe in total, (which I am grateful for) and I am looking to put forward a full and final IVA to my creditors.


Until recently I thought the only option for me would have been to go bankrupt until being offered help.


I have no real assets at all apart from a clapt out car on a salary of £18000 but I do have an approx' disposable income of between £100-£200(depending how you look at it) after looking at my income and expenditure.(which I realise could be paid into a bankruptcy payment order) Which would on the whole make life very difficult.


My question or thoughts on the matter revolve around the offer from my family for a full and final IVA settlement and whether or not to take them up on their offer or "to bite the bullet" and go bankrupt as I have nothing.


Hoping to not sound selfish as I realise with this offer I am in a much better position than most.

James Falla

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Re: failed IVA what next??
« Reply #1 on: Oct 23, 2012, 10:15:25 AM »
Hi there Jacketpotatoe
There is no reason why you should not offer a settlement to your creditors and it may well be that they accept it. However I would say this. Why would you do that? If you have no assets then you are not going to lose anything by going bankrupt. Yes, if you can afford to do so you will have to make payments towards your debts for 3 years. However the debts will then be gone. Why ask your family to use what I assume is a significant lump sum on settling a debt which could be dealt with in a far less expensive way with bankruptcy?? Personally I would tell them to save their money, help you with the £700 bankruptcy fee and if they still want to give you the money, give it to you after you are discharged so it is yours to keep....
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jacketpotato

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Re: failed IVA what next??
« Reply #2 on: Nov 01, 2012, 09:26:28 PM »
Thanks for the advice!! I have discovered that defaults will be re registered if you like against me if the full and final were to go through so another 6 years...
My concerns over the bankruptcy regards my disposable income for example over the next 3 years if I were to earn considerably more then it could ultimately cost me alot more than to go through the final settlement... Again I probably sound selfish but it's just which way to go. I am now thinking bankruptcy but am worried not of the stigma etc but the fact that it could work out worse in many ways not to mention the extra 3 years of having to provide proof of circs etc