Anyone been through the process? I’ve had an IVA for 2 years (3 still to go) and really struggling to keep up the payments. Have been advised to go bankrupt as my credit rating is pretty much gone anyway.

This isn’t personal debt from buying shoes and pink shiney things before anyone makes any judgemental comments its debt from my divorce / ex husband playing at being self employed for several years and everything from ‘normal life’ i.e credit cards, loans, overdrafts etc being in my name.

How painless is the process i.e. the freezing of your current account for a while etc

Ps: I work full time but contracted till September and rent have no assets

There was a very good thread on this about a month ago, it will be in my history but I’m in my iPhone so won’t find it as it’s a pain in the arse. However if you have no assets, no job come September, and you rent then it’s painless in the main part.

You will need a garrentor if you go through letting agents, though if you had any ccjs then you probably needed one before

You can look forward to being out of the Money market for years. No Loans, Good bank accounts, Credit Cards, phone contracts or Sky. You can also shiver in winter as your power will be prepay at a higher cost to everyone else.

Don’t do it lightly; you don’t get something for nothing. Can you not renegotiate your IVA? 3 years doesn’t sound that bad.

With the exception of the credit cards and mobile phones your pretty uch wrong. If you are going bankrupt you probably dont want an overdraft if you already have a mobile phone then just upgrade that. they dont credit check you for upgrades. No need for pre pay fuel either.

That is not my understanding. Read this; facts not guesses.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

Check out the relevant forum on Money Saving Experts.

You need to contact people who know. CCCS are the people to talk to http://www.cccs.co.uk/ girl at work was in a similar boat to you aand off advice given here she has started the move toward bankruptcy.

Going bankrupt is perhaps going to offer you some immediate closure and a fresh start, having a big debt for three years may be worse.

Speak to some experts.

Bagpuss feel free to email me.

I went bankrupt on monday of last week

The thing to consider is this:

You have to justify your expenses and these are very strict. If your justifyable expenses are equal to or greater than your disposable income then you will be fischarged in 9 months (discharged = receiver cannot take any more money)

However if your income exceeds your justifyable expenses even by £20 then the receiver will place a charging order which will remain for 3 years

(charging order: the receiver takes 100% of any disposable income)

This 100% is an important and recent increase

timdrayton – haven’t you been there before as a result of business issues?

Fair play – you’re tougher than most.

Ourmaninthenorth nope considered it a few years ago but decided not to put the wife through it.

Ironic considering my current circumstances (marital split just got messy…)

Just re read my post and i should clarify

the charging order Is only considered on disposable income

Ie whats left after subtracting your income from your justifyable expenses

Disposable income is therefore not necessarily a good thing dependant on circumstance.

tim – apols. My memory is playing tricks. Hope it wall works out for you.

Suggest you contact your local Citizens Advice Bureau, unless of course it was them who suggested you go bankrupt.

Also lots of information here: http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/help_with_debt_index_ew.htm

Thanks for that guys, I’ve contacted them to see if my amount on my IVA can be reduced at all, I know I have to pay it, I’m not doing a ‘Kerry Katona’ as we call it round here. See what they come back with, other than that I’m trying to think of a second income that may make things a bit easier.

Like I said it wasn’t shoes and handbags, I’m more of a pint and footie girl, when my ex wasn’t earning anything, which was for quite a long time I was paying bills and stuff on credit cards, daft I know, but what you do to get by at the time thinking things will change… they didn’t….. he didn’t… so I left but stuck paying back ALOT of money.

Guess I’ll just ‘suck it up’ and continue as I am try and see if ‘Hardy’s will sponsor my drinking for a while

You have to justify your expenses and these are very strict. If your justifyable expenses are equal to or greater than your disposable income then you will be fischarged in 9 months (discharged = receiver cannot take any more money)

When you say justify do you have to show utility bills, receipts for petrol etc how do you proove it to them??? I heard they change your tax code so that they claim your tax under an IPO I don’t care as long as its getting paid, I’m not trying to shirk it just make life a little easier, working so hard then having bog all money is depressing but hey I have a good job I love, tonnes of mates and a great life apart from this worry so….

Try this forum. There are loads of real world examples on here.

linky

Thank you

There are acceptable thresholds for a massive range of different expenses

If you exceed these thresholds yet have a good reason (driving a long way to work for example) then the receiver can use their discretion.

Bagpuss – considering your situation, you come across as chipper and definitely not out! Well done for keeping your chin skywards. Hope you find a less painful solution very soon.

First things first get yourself to http://www.insolvency.gov.uk and download yourself a copy of the Government’s guide to bankruptcy and then read it slowly and carefully. Bankruptcy is not to be taken lightly.

You don’t say who the advice is from but I’d strongly advocate talking to a licensed insolvency practitioner (maybe your IVA supervisor who will be a licensed IP) or a lawyer specialising in insolvency who can explain the issues to you properly. Many do a free initial consultation.

I am employed in the insolvency profession and a lot of the “pub advice” around bankruptcy and insolvency is seriously flawed and with regulation in the sector changing frequently what was good advice last year or even month may no longer be.