IVA, insolvency, bankruptcy, whats the difference?

29 Jan 2008

Are there any solicitors, legal peeps that can tell me the difference between going for insolvency or applying for bankruptcy? or indeed anyone whose been through either.
(dont worry you dont have to tell me any details of who you/where you work for or what happened, just want to know that you know what youre talking about!!)
Is there a better option for an individual (not a business) to choose with regards the future?
How long does each one adversly affect you, what are the adverse effects of each one....any detalis would be really helpful.
Thanks, I know I can rely on the clever peeps on her to explain in a way I can understand lol

xxxxxxxxxxxxx

29 Jan 2008

Try this web-site

Should help answer your queries smile

29 Jan 2008

cheers rock xxx

29 Jan 2008

I'd love to look all clever and help lol but I haven't a clue, I did google though and there's absolutley loads of conflicting information on the net with regard to bankruptcy and how it affects you both short term and long term the best thing might be to pop down to citizens advise they have people specialy trained in these matters.
Good luck and hope all goes well for you xx xx

29 Jan 2008

i hope its not too serious hun .
cannt help but i do offer my support

29 Jan 2008

Quote by Sara_2006
i hope its not too serious hun .
cannt help but i do offer my support

Thanks hun, that means a lot :inlove:

29 Jan 2008

I`ll send you a pm. wink

29 Jan 2008

PM sent

29 Jan 2008

These people are fantastic for anyone who needs impartial advice. They have a forum so that you can chat to others in the same situation and it's moderated by people who know everything there is to know.
Love
Fire xx

29 Jan 2008

Beware of the helpful "financial advisors" who promise loads of help. They`re only after claiming commission on any IVA they can sell you. If you go for bankruptcy they make no money out of helping you do that and you`ll find they disappear. confused

29 Jan 2008

Thanks for everyones help and lovely comments, youve all been fab biggrin

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29 Jan 2008

Your local Citizens Advice Bureau has a specialist who can help with quality free information and support. Just don't get involved with any of the agencies that advertise.
Hope it works out.

29 Jan 2008

Wish I could say something that's helpful ........ but I dont think I can ........... I have no idea ........................... so just a for ya!
Hope it all works out!
Sam xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

29 Jan 2008

my brother got an IVA through the bank though not one of these that are out solely to make money
not 100% on the ins and outs but i took it to mean this -
an IVA takes all your debts and pays them off and then you pay back (less interest doing it that way) and i think credit rep is rebuilt slowly

29 Jan 2008

Didn't Martin Lewis cover this on his prog last week? Try link ;-)

29 Jan 2008

Hi
I've just chucked you a little pm
Hopes it's of interest
Reacher

29 Jan 2008

Quote by cu3b4ll
Didn't Martin Lewis cover this on his prog last week? Try this link ;-)

Martin Lewis??? Wasn't he one of the "Professionals" or I am getting confused with Morse's side kick?
Stepping away from the keyboard
Sam xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

29 Jan 2008

Quote by blonde
Didn't Martin Lewis cover this on his prog last week? Try this link ;-)

Martin Lewis??? Wasn't he one of the "Professionals" or I am getting confused with Morse's side kick?
Stepping away from the keyboard
Sam xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
rolleyes

29 Jan 2008

Quote by blonde
Didn't Martin Lewis cover this on his prog last week? Try this link ;-)

Martin Lewis??? Wasn't he one of the "Professionals" or I am getting confused with Morse's side kick?
Stepping away from the keyboard
Sam xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
will somone please help blonde out and go around and unplug her keyboard rolleyes

29 Jan 2008

you lot are so fab it unbelieveable!!
Thanks for all the help, advice and lovely words. both in the forum and via PM, from you all. :inlove: :inlove:
I will be having a good look at all the links and site names that people have suggested.

29 Jan 2008

Went through an IVA years and years ago (15 yrs or so), so rules may have changed since then? In our case, it cost an arm and a leg, and we came to an agreement with our creditors of what percentage to repay them (in our case it was 25%). Some creditors such as tax (i think it was) has to be repaid 100%. Bear in mind that with an IVA it remains on your record for much longer than a bankrupcy (at least thats how it was then).
No doubt rules have changed since then, but good luck anyways.
Sx

30 Jan 2008

Its quite a complex old issue insolvency and bankruptcy.
The CAB is your ebst starting pint.
They have extensive resourc3s available under their adviser net. Just search CAB adviseguide
From there id suggest talkin to the local branch.

30 Jan 2008

Quote by X_fanny_x
my brother got an IVA through the bank though not one of these that are out solely to make money
not 100% on the ins and outs but i took it to mean this -
an IVA takes all your debts and pays them off and then you pay back (less interest doing it that way) and i think credit rep is rebuilt slowly

Agree but it doesn't build your credit score. It stays against your name for approx 7 years. Quick example; if you owe £20K over 10 years and your repaying £200 a month, with an IVA you reduce the period to 5 years so you are debt free later on in life. So over 5 years you will pay approx £300 a month, half the time almost double the payment. But the repayment amount will be negotiated with the debters. Also, you can only apply for an IVA if you have debts over £15K.
Bankruptcy currently lasts 5 years, once you file for bankruptcy and are put on the register and all your debts will be wiped clean. Not recommended if you have a car on finance or a mortgage because they will simply be taken from you. Also, you cannot be a Chartered Accountant/Company Director/Lawyer and a few other professions. You will not be able to apply for any sort of credit for the whole duration and will have to start building you credit score from scratch after the 5 years. You will have to also declare that your are on the register or have been to certain companies or institution i.e insurance companies.
You can apply for bankruptcy any time, there is no limit on the amount of debt. But nowadays you do get the little run around and the courts would rather you file for an IVA than bankrutcy, that way the creditors will get something back rather then nothing.
Personally i would apply for Bankruptcy and not an IVA but only after September, the limit of 5 years will be dropped to 1 year which will obviously work in your favour.
Anyway, i'm tired of all this typing and hope I haven't bored anybody by it. biggrin

If you need further advice then your best bet is to contact your local advice bureau.

30 Jan 2008

Try
They have some very good practical advice :thumbup:

30 Jan 2008

Quote by Bonedigger
Are there any solicitors, legal peeps that can tell me the difference between going for insolvency or applying for bankruptcy? or indeed anyone whose been through either.
(dont worry you dont have to tell me any details of who you/where you work for or what happened, just want to know that you know what youre talking about!!)
Is there a better option for an individual (not a business) to choose with regards the future?
How long does each one adversly affect you, what are the adverse effects of each one....any detalis would be really helpful.
Thanks, I know I can rely on the clever peeps on her to explain in a way I can understand xxxxxxxxxxxxx

My Sister has just gone bankrupt so know a little bit. With an IVA you agree to pay a certain ammount each month for a certain period of time. As long as you agree to it you are allowed to keep things like your house and car and other things.
Going bankrupt is very different. If you have assets they will be taken. Things like a car or your house. My Sister had no assets and an old car. So really she had nothing they could take from her. She was discharged from her bankrupsy after 9 months! Could not believe it was that quick but think so many people are now going this way. In the IVA form it will take a lot longer to pay off your debt, but if you have a house at least you can keep it, as long as you stick to the terms of the IVA.
There is probably a bit more to it but as far as I am aware, that is the basics of it. If you have no assets to speak of then bankrupsy is the better route, and could as in my Sisters case be over in less than a year.
I hope this helps you a bit, and good luck with whatever route you take.

30 Jan 2008

Quote by Speedy2008
my brother got an IVA through the bank though not one of these that are out solely to make money
not 100% on the ins and outs but i took it to mean this -
an IVA takes all your debts and pays them off and then you pay back (less interest doing it that way) and i think credit rep is rebuilt slowly

Agree but it doesn't build your credit score. It stays against your name for approx 7 years. Quick example; if you owe £20K over 10 years and your repaying £200 a month, with an IVA you reduce the period to 5 years so you are debt free later on in life. So over 5 years you will pay approx £300 a month, half the time almost double the payment. But the repayment amount will be negotiated with the debters. Also, you can only apply for an IVA if you have debts over £15K.
Bankruptcy currently lasts 5 years, once you file for bankruptcy and are put on the register and all your debts will be wiped clean. Not recommended if you have a car on finance or a mortgage because they will simply be taken from you. Also, you cannot be a Chartered Accountant/Company Director/Lawyer and a few other professions. You will not be able to apply for any sort of credit for the whole duration and will have to start building you credit score from scratch after the 5 years. You will have to also declare that your are on the register or have been to certain companies or institution i.e insurance companies.
You can apply for bankruptcy any time, there is no limit on the amount of debt. But nowadays you do get the little run around and the courts would rather you file for an IVA than bankrutcy, that way the creditors will get something back rather then nothing.
Personally i would apply for Bankruptcy and not an IVA but only after September, the limit of 5 years will be dropped to 1 year which will obviously work in your favour.
Anyway, i'm tired of all this typing and hope I haven't bored anybody by it. biggrin

If you need further advice then your best bet is to contact your local advice bureau.
ah thank you explains alot to little old me lol

30 Jan 2008

I think you have to be very careful about any of these options and so you need professional, independent advice before proceeding.
For example, I think it may be true to say that while the new regulations appear favourable towards going for bankruptcy, if you were to win the lottery or have some money or property left to you in a will many years after your so called discharge, your trustee in bankruptcy can just lift it and use it to pay off outstanding amounts (as well as his fees) that were not fully paid at the time.
As for IVA's, these are arranged by the new breed of leeches designed to make them money, not necessarily solve your problems. Everything that an IVA can do, you can do for yourself if you unplug your head from the sand. Nothing is un-achievable. For an IVA to work, you need to have 80% or similar of your creditors (by value) agreeable to it or it fails at the first post. Some of the unscrupulous money fixers take your money anyway in their fees and never pay it on to your creditors so you still owe the full amount!
Be aware also that Credit Card companies by default will NEVER agree to an IVA or to reducing the balance on your account. If that is where the majority of your debt is, an IVA will beyond reach.
If you have a problem, face your fear at the earliest opportunity.. it won't go away!! Talk to your creditors and offer to pay what you can and keep to the schedule. Don't waste what money you have paying the money leeches to do it for you. You'll be stronger and more focused in the end.

30 Jan 2008

Quote by GnV
I think you have to be very careful about any of these options and so you need professional, independent advice before proceeding.
For example, I think it may be true to say that while the new regulations appear favourable towards going for bankruptcy, if you were to win the lottery or have some money or property left to you in a will many years after your so called discharge, your trustee in bankruptcy can just lift it and use it to pay off outstanding amounts (as well as his fees) that were not fully paid at the time.
As for IVA's, these are arranged by the new breed of leeches designed to make them money, not necessarily solve your problems. Everything that an IVA can do, you can do for yourself if you unplug your head from the sand. Nothing is un-achievable. For an IVA to work, you need to have 80% or similar of your creditors (by value) agreeable to it or it fails at the first post. Some of the unscrupulous money fixers take your money anyway in their fees and never pay it on to your creditors so you still owe the full amount!
Be aware also that Credit Card companies by default will NEVER agree to an IVA or to reducing the balance on your account. If that is where the majority of your debt is, an IVA will beyond reach.
If you have a problem, face your fear at the earliest opportunity.. it won't go away!! Talk to your creditors and offer to pay what you can and keep to the schedule. Don't waste what money you have paying the money leeches to do it for you. You'll be stronger and more focused in the end.

Credit card companies were willing to reduce the ammount owed to my Sister. For example one credit card bill was for just over £2000, they said they would accept half that if she was prepared to pay within 7 days. Of course she could not do this, but they DID offer to reduce the debt. From their point of view if a customer goes Bankrupt, they will not get a penny, so something Is always better than nothing.
As for being chased years after a Bankruptcy, I am not sure on that one. I always thought that once your Bankruptcy was discharged then that was it. Other than the fact you cannot work in a financial place for a certain ammount of NO assets an IVA is not generally a better way forward.

30 Jan 2008

Quote by GnV
if you were to win the lottery or have some money or property left to you in a will many years after your so called discharge, your trustee in bankruptcy can just lift it and use it to pay off outstanding amounts (as well as his fees) that were not fully paid at the time.

That money would only be "liftable" within the time you are registered as bankrupt. Once you are discharged my understanding is that they cant do that.
And despite being bankrupt they will still have to make payments determined by the Official Receiver for whatever amount of time...again determined by the OR. So a payment plan will still exist (abit like the IVA)even after the bankruptcy discharge which is usually after 12 months, the payments can go on for 36 months, but once that is finished that`s it. Further money is NOT taken by the OR whether won or awarded in a will.
If the bankrupt person doesnt co-operate with the OR the OR can extend the bankruptcy period to as long as 3 years before they discharge them but the usual time is 12 months, if there is nothing much to sort out in the way of assets selling the bankrupt may be discharged earlier at the OR`s discretion.

30 Jan 2008

We went bankrupted about a year ago for £80,000 all we lost was our car best thing we ever did, ment we could sleep at night knowing that when all the ppl phoned asking for there money we could tell them where to go.
We got discharged after 6 months, only bad thing is it shows on our credit report for 3 yrs then its all gone.
Contact the CCCS there a goverment run credit council.