IVA anybody done one?

[anonymous-user]

Hi my mate is doing an IVA, next one up from Bankrupcy for 23k.

Anybody done one before just wondered what he can expect.

[E31Shrew]

At first glance I thought this was about insemination

[Jasandjules]

I imagine it's going to be close enough to bankruptcy to destroy his credit history for the next five years. Also, it's worth checking whether or not it means that the debts are written off or not as I assume that's the idea of doing it?

[BigLepton]

jaymodunn said:

what he can expect.

His creditors being really angry as he has spent their money and is now trying to hide from his responsibilities?

[anonymous-user]

I have read about on the t'internet jsut thought somebody might have first hand knowledge.

Most likely you are all responsible borrowers, not the sort of people the Credit Crunch is built on..not like my mate..

[Brian Fantana]

bankruptcy is a way better option. Debts written off, you could be out of the restrictions in under a year and depending on your income vs outgoings you may not have to pay anything back.

As long as you're honest about why you've got in to trouble it's a pretty painless option.

[thehawk]

BigLepton said:

jaymodunn said:

what he can expect.

His creditors being really angry as he has spent their money and is now trying to hide from his responsibilities?

Why should the average person be any different from our captains of industry and directors of our financial institutions?

[singlecoil]

Brian Fantana said:

bankruptcy is a way better option. Debts written off, you could be out of the restrictions in under a year and depending on your income vs outgoings you may not have to pay anything back.

As long as you're honest about why you've got in to trouble it's a pretty painless option.

Bankruptcy is more expensive, though, IIRC at least £500. Where is a skint individual supposed to find that?

[Bungleaio]

singlecoi said:

Bankruptcy is more expensive, though, IIRC at least £500. Where is a skint individual supposed to find that?

Quick loan application before filing for bankruptcy? Actually I wouldn't be surprised if you can get bankruptcy on finance now.

[Stevenj214]

singlecoil said:

Bankruptcy is more expensive, though, IIRC at least £500. Where is a skint individual supposed to find that?

Credit card?

[BigLepton]

thehawk said:

BigLepton said:

jaymodunn said:

what he can expect.

His creditors being really angry as he has spent their money and is now trying to hide from his responsibilities?

Why should the average person be any different from our captains of industry and directors of our financial institutions?

They shouldn't. Both are wrong.

[mattley]

Before I pass comment I guess I should ask, is your friend;

a - A feckless waster who abused his Credit Card buying st FHM/Cosmo told them they deserved, or
b - Unfortunate enough to have suffered a major change in circumstance whilst a little highly geared?

b is in most cases a subset of a but not always.

[anonymous-user]

Bungleaio said:

singlecoi said:

Bankruptcy is more expensive, though, IIRC at least £500. Where is a skint individual supposed to find that?

Quick loan application before filing for bankruptcy? Actually I wouldn't be surprised if you can get bankruptcy on finance now.

That is quote funny actually as he ws advised by the Insolvancy Superviser to max out his overdraft's before he did it.

They wipe 25% of the total debt out and do all the paperwork..No interest etc..

Just a crap credit rating for 5 years...Did sound too bad..Maybe too good to be true??

[911DM]

Brian Fantana said:

bankruptcy is a way better option. Debts written off, you could be out of the restrictions in under a year and depending on your income vs outgoings you may not have to pay anything back.

As long as you're honest about why you've got in to trouble it's a pretty painless option.

Is it the case though that when going bankrupt you have to give up all assets - including your house (or as much equity as you have in it)?? This may be the biggest downside for the OP's mate if it is indeed the case. Also, you may be discharged in a year but it will sure as heck stick to your credit record for many years to come! SO would an IVA though I guess although possibly less stigmatic??

IVAs are a relatively new fangled thingumy jig that means you get most of your debts written off - if your creditors agree - and pay a princely sum to some spotty 'adviser' for arranging it; and pay the rest off at 10p a year!!!!!!!

What makes my blood boil is when i catch programs on tv where people say they have been enjoying three caribean holidays a year and new cars for the past few years; all on credit cards; they can't pay it off and they blame the credit card companies for giving them the money!! Sheez do they think it falls out the sky!

[anonymous-user]

911DM said:

Brian Fantana said:

bankruptcy is a way better option. Debts written off, you could be out of the restrictions in under a year and depending on your income vs outgoings you may not have to pay anything back.

As long as you're honest about why you've got in to trouble it's a pretty painless option.

Is it the case though that when going bankrupt you have to give up all assets - including your house (or as much equity as you have in it)?? This may be the biggest downside for the OP's mate if it is indeed the case. Also, you may be discharged in a year but it will sure as heck stick to your credit record for many years to come! SO would an IVA though I guess although possibly less stigmatic??

IVAs are a relatively new fangled thingumy jig that means you get most of your debts written off - if your creditors agree - and pay a princely sum to some spotty 'adviser' for arranging it; and pay the rest off at 10p a year!!!!!!!

What makes my blood boil is when i catch programs on tv where people say they have been enjoying three caribean holidays a year and new cars for the past few years; all on credit cards; they can't pay it off and they blame the credit card companies for giving them the money!! Sheez do they think it falls out the sky!

He just spent 1k on a Holiday to Tenerife last month so not far from the Truth..

[extvr]

IVA is a fixed agreement with all your creditors to pay a certain amount back over 5 years, (a fixed amount based on your dissposable income} The remainder being written off after the period. It costs between 5k and 7k to do it, the consultant who arranges it gets the money, from your fixed payment, all the creditors have to agree or it will be refused.
Bankrupcy is the same, except the judge declares it in court, you walk out debt free there and then. In this case though your house can be sold and the profit payed into your bankrupcy. Both cases destroy your credit rating for at least 5 years but more likley 7 to 8.
So IVA if you have a morgage and want to keep it.
Bankrupcy if you dont care.

Edited by extvr on Tuesday 10th March 20:57

[Simond001]

swerni said:

bunch of parasitical immoral thieving scum.

If you borrow money you pay it back

else your a ponce and no better than the scum who live of the social because it's easy

You stupid tt.

What about someone who had a good credit line, used it sensibly within their means and then got stiffed by a third party.

Likely to happen to a few on here as a lot are contractors!

An IVA can be used to manage the debt over up to 5 years, and pay up to the full amount back.

If someone has a property, with equity then they pay a fixed amount for 5 years and then either stump up the balance (by remortgaging usually)or have the fear of their property being sold.

[northandy]

extvr said:

all the creditors have to agree or it will be refused.

Not strictly true, my financially inept and stupid sister has just done one, some of her creditors asked for her to made bankrupt, but the IVA went through... in reality she has no assets anyway...

I think theres a definate generation thing, her and many of her mates have done it, it seems popular... i'd be mortified at doing it..

[jules_s]

extvr said:

IVA is a fixed agreement with all your creditors to pay a certain amount back over 5 years, (a fixed amount based on your dissposable income} The remainder being written off after the period. It costs between 5k and 7k to do it, the consultant who arranges it gets the money, from your fixed payment, all the creditors have to agree or it will be refused.
Bankrupcy is the same, except the judge declares it in court, you walk out debt free there and then. In this case though your house can be sold and the profit payed into your bankrupcy. Both cases destroy your credit rating for at least 5 years but more likley 7 to 8.
So IVA if you have a morgage and want to keep it.
Bankrupcy if you dont care.

Edited by extvr on Tuesday 10th March 20:57

I worked for a bloke in the 90's that did an IVA.

From what i can remember of it the IR took all they were due, and the employees were pretty much bottom of the list (I lost a lot of wages)

He kept his business, his house, downsized his premises (lost his boat though) but was still trading 5 years later...

Still leaves a bad taste in my mouth that one.

[extvr]

Simond001 said:

swerni said:

bunch of parasitical immoral thieving scum.

If you borrow money you pay it back

else your a ponce and no better than the scum who live of the social because it's easy

You stupid tt.

What about someone who had a good credit line, used it sensibly within their means and then got stiffed by a third party.

Likely to happen to a few on here as a lot are contractors!

AS in my case very well paid job, to average paid job, to no job for 6 months now. All the money i borrowed i intended to repay, with all there intrest, but without an income it gets extreamly difficult, is that my fault? no just thought i had a job for life, never thought i would get shafted but you live and learn.