I am in a lot of debt and have been advised by a debt agency to go bankrupt does anybody have any advice plz?

What about a IVA - Individual voluntary Arrangement - See this website for details of what this about and how it differs from bankruptcy..


http://www.libertytreegroup.com/





Go to the link which says ';Our Products';. the go to the part which says IVA...





This is part of what it says IVA's are:


';An IVA is an alternative to bankruptcy introduced by the government as part of the Insolvency Act 1986. It enables an individual in debt (debtor) to make a proposal to the people they owe money to (creditors) to reach a settlement. Should the proposal be approved by a majority of the creditors, the IVA then stands as a contract that binds all parties and prevents any further action.





A standard IVA will offer to pay whatever is affordable monthly into a fund over a five year period, and after that the debt is cleared. This can be the case even if the creditors end up getting less than 30% of their debts repaid, and so monthly payments into an IVA can be as little as 拢250 per month. Payments are based on what an individual or household can actually afford and are normally over 拢300-400, but still tends to be significantly less than the existing minimum payments on credit cards and loans';.








Nope I don't work for the company but came across the site myself today.. it just explains how IVA's differ from bankruptcy and at least you wouldn;t lose everything!! Lots of people are going for IVA's apparently.





Also contact your local CAB who will be able to offer you advice...





Take care...I am in a lot of debt and have been advised by a debt agency to go bankrupt does anybody have any advice plz?
as above IVA is the way to go. your credit rating will not be affected, although you will be advised not to get loans or credit cards while the amount is payed off. if you get the right agency you may be able to get 75% of the money owed written off in a 5 year period.





Good luckI am in a lot of debt and have been advised by a debt agency to go bankrupt does anybody have any advice plz?
Have you weighed out the pros/cons. I suggest another opinion from a financial planner. I regret filing bankrupt because it wasn't that bad. I could have closed some open items. I was misled - so get that other opinion maybe 2.


Good Luck!!!!
A site with good advice on it is www.moneysavingexpert.com, which was written by a prominent TV personal finance expert. There's also a specialist forum there, so it's worth a look to help you make an informed decision.





Also, make sure you have independent advice (which you should be able to find for free), since this agency may have a vested interest.





Remember that neither bankrupcy nor an IVA is a decision to take lightly, so be careful.
Please don't take the advice of a debt agency. They're in the business of taking money from you. They'll charge to handle your bankruptcy and they'll charge a phenomenal amount if you go for an IVA. (The companies on TV that advertise IVAs as 'We'll use government legislation to write off your debts' will charge you between 8k and 15k to administer your IVA.)





Go and talk to the money advice team at your local citizens Advice Bureau. They are the only ones that will give you unbiased advice and guide you through any paperwork for free.
I am not an expert at all on this but you should do everything possible to eliminate your debt before you declare banruptcy. It is going to screw up your credit report for years. If you keep paying your debt now and on time that will be positive for your report. Going bankrupt should be the absolute last thing, where you can't do anything else. Have you tried consolidating your debt? You can also work with the people that you owe money to bring down your amount due. I would try every possible thing first. Good luck!
You may or may not qualify for Chap 7...you can't file either a 7 or 13 until you've completed a financial class approved by your Trustee......You should call your local trustee for a list of approved classes and go ahead and sign up......at least then you'll know where you stand and if you choose to go forward, you can at least file.....
my brother declared himself bankrupt, the only regret he had was not taking more.debt but everyones different
First you need to budget your money and determine the minimum you can live on and take the remainder of your income and divide it amongst all your creditors with an explantion. They should back off as long as you keep making consistent payments. Some will still sue you for the balance and even if they win, they still have to accept those payments since they can't squeeze blood from a turnip--they can take a lot of your personal property but they have to leave you your house and at least one vehicle, and your furniture (if inexpensive--if antiques, they can take them and auction them off and anything else you own that is ';unneccesary';)
it depends on these things:





1) how old are you?


2) what is the debt primarily from (medical bills? out of job? kids? credit card bills?)


3) do you want a house in the next 10 years?


4) do you realize that your credit history is garbage if you do it?





if at all possible, you should not go bankrupt. i don't want to lecture, but it's morally wrong if you got yourself into the mess by misusing credit cards by purchasing junk and stuff. yes, everyone makes mistakes and this is a common one, but the things you bought or used cost money. not paying for it is essentially stealing. if the mess was unavoidable (lost job, medical bills that weren't covered by your medical insurance policy), then it is more understandable. however, future creditors won't care how or why. just that you filed for bankruptcy.





also, be aware that new bankruptcy laws went into effect last year. this made it more difficult to file, and if you make a lot of money you are limited to the type of bankruptcy you can file.





good luck.
You should probably follow the advice the agency unless they have done something to make you think they are wrong. The bad news is the bankruptcy will stay on your credit record for at least seven years. During that time it will be hard to get credit for a car, house, credit cards, etc. Also your car insurance rates may be higher (I know this is nuts but I swear it's true) It is supposed to be harder now to file for bankruptcy but I think what that really means is that the lawyers will charge more money to do the paperwork. It is a huge step please be sure the agency is sure. Good luck.
Depends which debt agency advised you. If its one that charges for services dont go with them. you can file for bankruptcy yourself without paying charges to anyone else.


First though you need to check bankruptcy is the best option. You could talk to Payplan, CCCS or CAB all of whom give free advice. CAB can help you fillin your bankruptcy forms and tell you the pros and cons too. All of them can help you with negotiating lower repayments with your creditors if that's a better option.


Other people have said it will stay on your credit history for up to 7 years, but so will any default you have with a creditor, so if you're already in debt you're credit history will already be damaged.
It's not possible to give you any advice on the information given.





I would second the advice to look at the chat boards on the moneysavingexpert site.





Also go to the link below to the dealing with debt board on The Motley Fool. Post your statement of affairs (you must have produced one to get the advice you have been given) and get more opinions.
I was advised the same thing in the late 80s. I was told if I didn't file I would be forced into it within three months. I refused to do it, got a second job and for about 2 years worked every day of the year. But I DIDN'T declare bankruptcy!!


Possible that a consolidation loan may help you. Try the link below