- Fri Jan 28, 2005 2:18 pm
Here's some anecdotal advice:
- well as Sarah says debt management could be an option, but even though you have a relatively high surplus income, it would still take you close to 10 years to pay off all your debts ( and that's asuming interest and charges are cancelled/frozen), so personally speaking I wouldn't go for that one.
- with an IVA you'd pay ALL of your surplus income for 5 years, then any debt after that would be written off. The IVA would stay on your credit file for 6 years from the date it began, so although it may not be quite as 'damaging' as having bankruptcy recorded on there, you still might have problems obtaining credit again for a few years.
The advantage of your IVA, of course is that you'd be able to keep your caravan which is possibly an 'assett' you'd lose in bankruptcy.
- if you go bankrupt, there'd be an announcement in the paper and in 'The London Gazette', there are certain jobs/offices you cannot hold when bankrupt, and you'd have to check very carefully that it would not affect your job or where you live (some employers/landlords will not allow bankrupted employees/tennants).
On the plus side, your debts would be written off, you may have to pay an IPA (Income payments agreement) for up to 3 years - BUT the insolvency service are A LOT more generous with what you can live on than any of your creditors would be, and would not expect you to pay all your surplus income.
So in summary, I guess it depends on whether you've got assetts or a job to protect?