IVA / Bankruptcy - what shall I do?

[jbg]

Next month I will complete my 2nd year of a 5 yr IVA. I incurred a lot of debt over a period of 7yrs after my divorce and having a personal crisis ? I?ve since had 2 yrs of therapy and am on the road to a better place. However, I am still paying off the huge debt that I got myself into.

I live in Spain and took a HUGE pay decrease coming here but I figured it was an opportunity not to be missed. After a few months I realised I could not keep up my credit card/loan repayments ? and managed to get an IVA which at the time seemed the best option.

I get paid in euros and each month money is transferred to my uk bank a/c to cover my iva/paypal etc.. Unfortunately, I have an o/d limit with my uk bank
of £1100 which I?m finding impossible to reduce. I logged on to my a/c yesterday and found the bank has reduced my o/d limit to £600 (my balance is -£830) with advising me! My IVA is £448 per month ? the IVA co. will want to increase that at my next review which is next month.

I am managing here with the money in my euro a/c but only just ? I?m always down to my last ?10 euros before payday.

In the meantime I?ve received letters from 2 different companies who say I?d be better off declaring myself bankrupt which I?ve ignored. Last week however, I received a phone call from a co. that said it worked with the IVA Watchdog and they believe I have a good chance of compensation as I should not have been advised to go down the IVA route in the first place. I?ve asked the company to send me more information for me to chew over

I?m not too bothered by compensation but the thought of being debt free is very tempting but of course there will be consequences. Apart from my overdraft which I try not to go into I pay for everything with cash ? and living here has changed the way I think of money in general.

What are your thoughts/suggestions about IVAs and bankruptcy? What would you do?

there is no such thing as the IVA watchdog - i'm guessing they will just want to sell you another iva or a debt management plan. Be wary.

If you have no assets to protect then going bankrupt is a good option for you and will cost you £485 I think.

Do you have any assets

you can get some great advice from debt forums - there's a bankruptcy one on www.debtquestions.co.uk - it's a board like mumsnet ie. no one trying to profit from you.

You could also call CCCS for some impartial advice.

Second vote for cccs, its also who the banks would tell you to speak to.

Third vote for CCCS.

They helped a friend of mine who had some serious debt problems. They're really supportive and explain all options in really straightforward terms.

Unfortunately there seem to be quite a few companies who prey on those in debt and it sounds like several of them have contacted you. These companies exist to make money, not to help you out of charity - be very wary of their "advice".

Another thing to bear in mind is that bankruptcy can have longer term effects, with certain employers refusing to accept someone who has ever been bankrupt. IVAs generally won't stay with you in the much longer term.

Good luck and I definitely recommend CCCS (Consumer Credit Counselling Service)

Hi JBG

NationalDebtline is fantastic.
I called these (number is on their website) and they are a no-fee advice point who will talk through your situation and then put you in contact with CCCS or whoever is appropriate.
They have helped me with a Debt Management Plan through the CCCS.
Good luck!

Thanks for your non-judgemental and useful feedback. I'll definately look-up the CCCS and the other 2 websites recommended.

Best wishes all.
JBG

Please call CCCS and ignore letters from these companies...they are just after your money in one form or another

Come back if you want any more ideas/advice once you've spoken to someone like CCCS. They'll be able to tell you what to do more clearly than we can, but we might be able to help with practicalities once you've decided on bankruptcy/IVA continuing or whatever. Good luck