Bankruptcy or IVA

[Christiane18]

Unfortunately this is now my choice; and wonder; IVA or Bankruptcy:- I have �45,000 debts, two young children, one job, a husband looking after the children; IVA is a 5 year payment of 25% of total debt resulting in impossible credit repair or Bankruptcy which is 1 one year of payment with no way of repairing credit. Which one is simply the best? Also WHO are the good debts advisors which DO NOT hassle you? Thank you.

[Didwot]

The disadvantage of bankruptcy is that, with limited exceptions, all of your assets passs automatically to your trustee in bankruptcy.
This includes your interest in your home (if you own it) and may result in your home being sold, unless (1) you don not own, but rent, or (2) it is in your hsuband's sole name, or (3) there is little or no equity in it or (4) your husabnd can raise sufficient funds to buy your share back.
That is not an insuperable problem. On the positive side, you cease to be liable to pay any of your debts, (with limited exceptions).
The disadvantages of an IVA are that you will need to make an upfront payment to an insolvency practicioner to be nominee of the scheme (usually about �2000), and then accept a commitment to pay part of yor salary to the scheme for five (or more) years. Some creditors are pushing through demands that IVAs should pay 100p in the � and run on and on until they do.
My view is that bankruptcy will usually be the better option nowadays, but there are circumstances where this may not be corredt. Most reputable insolvency practicioners will give you some free preliminary advice.

[Didwot]

I should have mentioned that you can get advice from the Consumer Credit Council, or the CAB.

[andyjevs]

Christiane I have just joined this forum http://www.debtquestions.co.uk/debt_forum/index.php They are very helpful and well worth talking to. I am going down this route http://www.payplan.com/ I'm going for a DMP (debt management plan) and hopefully, in 7-10 days, payplan will be getting back to me with full details. Hope this is of some use to you.

[sam82]

i was just wondering where you live, as if you live in scotland (its only available here) its called a protected trust deed and its a form of bankruptcy u have to owe more than �15000 and not be able to make your payments. you then go into the trust deed through a solicitors agreement and for 3 years you pay around �150 a month for 3 years then after the 3 years your  money is divided up into your creditors and then your clear of all your debts and you can build your creidt scoring up again..

your citiznes advice would be able to advise you this or do an internet search on trust deeds.

[myvesta-sean]

Hi there,
The link below may help you decide also.

http://video.google.com/videoplay?docid=-43012 0324572854434&q=bankruptcy

[jb001]

I think it would be advisable to contact the experts rather than ask on a website such as this. Try the following link which goes to a site which has more details about which would be the right option for you >>>>> <a href="http://www.payplan.com/iva-individual-v
oluntary-arrangements.php">IVA</a>