Author Topic: Living with Parents  (Read 2903 times)


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Living with Parents
« on: Aug 12, 2009, 12:52:34 AM »
I am currently oweing approx £50,000 to 4 credit cards and a bank loan. i have no assets apart from a £2000 car and a 42" TV worth around £300.

I am 32yrs old and living with my eldery parents. Am currently unemployed on £62pw allowance but looking for work, i tend to earn around £900-£1000 after tax.

With doing some browsing on the net i have come to the conclusion that either an IVA or a bankruptcy would be my best option. So far i have written to my creditors with an income/outgoing expenditure plan and awaiting decision if i can contribute £5 per month for the next 3 months.

I know the effects a bankruptcy can have i.e name in press, credit history but if i can have £50,000 written off then am not too bothered.

Just wanted to know what effect it would have on my parents who are in their 70's i.e repossions of their belongings. i dont mind creditors taking all of my stuff once bankrupt but how would they know whats mine and whats my parents ?

If it effects my parents then i'd might be better off moving into a bedsit and creditors can chase me there and take whatever.

Other option is IVA, if i get any job paying £900pm i could probably contribute about £250-£300 a month for 5 years writing off approx 65% of the debt.

Your thoughts would be most appreciated.

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Re: Living with Parents
« Reply #1 on: Aug 16, 2009, 01:35:13 AM »
you have no assets. DO THE RESEARCH.

An IVA is effectively asset insurance. You are paying this premium to effectively create a shield between your creditors and your assets.

If you are only defending a car (that you could keep in a bankruptcy as its value is less than £2000 and you use it for work) and a tv (that you would be allowed to keep) then I do not see why you would even CONSIDER an IVA.

Do the research about credit rating drop comparisons between an IVA and a Bankruptcy.....

Did you know that you cannot start rebuilding your credit rating until completion of your IVA? That means you cannot start rebuilding your credit rating until the 5th year..... With a bankruptcy you can start rebuilding your credit rating immediately......
Raphael Gilbert
Head of Insolvency Divison www.ban