debt

[panthercat]

my friend is hopelessly in debt,around �35000,no assets.is bancruptcy,or an iva the better course.

[Ethel]

If s/he doesn't own his/her house, bankruptcy will be the best deal.

However, your friend should make an appointment with a debt advisor at the Citizens Advice Bureau for proper advice.

[Didwot]

An IVA is likely to run for several years (3 or even 5) and require monthly paymennts. In addition there will be substantial up front fees to the Insolvency Practitioner who sets up the IVA. On the other hand the Bankruptcy period is only 12 months, and although it is possible for a bankrupt to be required to make payments towards their debts out of their income this only arises where there is surplus income after payment of all reasonable living expenses. I agree that generally bankruptcy makes more sense

[NORMANTHEDOG]

i think you will find bankrupcy is more then 1 year,more like 3

[Pippa68]

I think it's changed to 12 months now.

[Buenchico]

The Consumer Credit Counselling Service is a registered charity so, unlike the many 'debt advice' services offered by commercial companies, its advice is impartial.

They've got an online system (where you simply answer a questionnaire) which recommends the best course of action for individual circumstances:
http://www.cccs.co.uk/

National Debtline is part of the Money Advice Trust, which is also a registered charity. They've got loads of information and advice on their website. They also operate a confidential telephone helpline:
http://www.nationaldebtline.co.uk/

Chris

[ummmm]

It's one year now

[Pippa68]

I have to add that even when bankrupts could be discharged after 3 years, it stayed on your credit report for a further 3 years.

Despite the fact that discharge is now after 12 months I think this still applies..

[shomer42]

If you have no income and no assets bankruptcy is better. It is 12 months, although if you have excess income they can seek contributions from you for three years. The IVA is usually five years but sometimes can be more or less.

An IVA is for someone who has real reasons to avoid bankruptcy. I work in an insolvency office.

i agree about someones comments with CCCS although they recommend something called debt management plans which are unregulated and are similar to IVA's.

Speak to CAB if in doubt.