IVA and bankruptcy
Discussion
A friend of mine ran up a lot of personal debt over the course of a few years - over £15k. With no chance of paying it back, she got an IVA, paying just under £100 a month. This has 3 years to run. She says she went for an IVA as she couldn't afford the fees to go bankrupt. Apparently that costs £700?
She should be getting a payout from her employer in the next few weeks, a settlement of several months salary to leave and not start a constructive dismissal case for discrimination.
She will use the money to clear some more debt, and is considering bankruptcy to get the IVA over and done with.
Is this possible?
Being bankrupt will probably be good for her, as she won't be able to borrow for a few years.
I have no idea about this sort of thing, having been debt free (apart from a mortgage) for over 40 years.
She should be getting a payout from her employer in the next few weeks, a settlement of several months salary to leave and not start a constructive dismissal case for discrimination.
She will use the money to clear some more debt, and is considering bankruptcy to get the IVA over and done with.
Is this possible?
Being bankrupt will probably be good for her, as she won't be able to borrow for a few years.
I have no idea about this sort of thing, having been debt free (apart from a mortgage) for over 40 years.
Hi,
I would think that consideration over how much is outstanding on the IVA versus the lump would be pertinent.
Not sure on her legal obligation to disclose this lump?
Think can still go bankrupt but may need to default on the IVA payment.
Credit rating impact is also a consideration but no idea on impact.
cheers
I would think that consideration over how much is outstanding on the IVA versus the lump would be pertinent.
Not sure on her legal obligation to disclose this lump?
Think can still go bankrupt but may need to default on the IVA payment.
Credit rating impact is also a consideration but no idea on impact.
cheers
Richard-3pdyn said:
Not sure on her legal obligation to disclose this lump?
Strictly speaking bank accounts are not fully monitored when you are going through an iva , however you are expected to be honest when it comes to acquiring a sum of money which could go some way to paying off your creditors... By going bankrupt though you will only have the option of a "basic" bank account and any other accounts you use need to be disclosed (for example joint accounts), you will also have a court appointed trustee who can check you accounts whenever they fancy and if they think you have more money than to cover normal expenses then they will be interested!.
She told me that they monitor her accounts for 3 months at the start of each year as part of the IVA.
Some of her current debts are to her kids, so those would get paid off if she gets the lump sum from her employer. 2 months behind on her rent and coincil tax, and owes money to DWP because they withdrew her DLA, but carried on paying it for a few months. These would have to be paid back too.
After paying everyone back, and putting enough aside to live on for a couple of months until she gets another job, there won't be much left.
Her latest wheeze is taking out mobile phone contracts, then selling the phones. She has 3 such contracts now, costing her over £100 a month. And getting credit with Amazon to buy Kindles, which she sells.
Hopefully going for bankruptcy will put a stop to that kind of thing?
Some of her current debts are to her kids, so those would get paid off if she gets the lump sum from her employer. 2 months behind on her rent and coincil tax, and owes money to DWP because they withdrew her DLA, but carried on paying it for a few months. These would have to be paid back too.
After paying everyone back, and putting enough aside to live on for a couple of months until she gets another job, there won't be much left.
Her latest wheeze is taking out mobile phone contracts, then selling the phones. She has 3 such contracts now, costing her over £100 a month. And getting credit with Amazon to buy Kindles, which she sells.
Hopefully going for bankruptcy will put a stop to that kind of thing?
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