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By cpharo2812
I currently have an Iva for my £25000 debts. I am now thinking I made the wrong decision taking the Iva and maybe I should have applied for bankruptcy instead. I live in a housing association property and do not own any assets.
My Iva company said if I apply for bankruptcy the living allowances accepted are lower than what they would be in an Iva - is this true.

This would be my second time going bankrupt, I made myself bankrupt 9 years ago so am I even able to apply for bankruptcy again?

I am worried if I apply for bankruptcy I might end up with a having to pay a higher ipo then what I pay for my Iva each month.

I dine won’t to end up paying more as I am currently only just managing my Iva.

Can anyone advise? :)
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By Hayden
Hi cpharo2812 and welcome to the forum :)

Given you are not a home owner and have no assets I think you would be better off going bankrupt. You will certainly not end up paying a higher amount each month and this is why:

As far as I am aware what you have been told by your IVA company is not correct. The living expenses budget allowances are basically the same whether or not you do an IVA or go Bankrupt.

From what I have heard and read the official receiver is actually more generous in terms of expenses than would be the case if you are in an IVA and so the monthly payment you make is likely to be less. Even if it were the same (it certainly would not be more) in bankruptcy you only pay for 3 years compared to 5-6 in an IVA so you save yourself 2-3 years of payments.

The fact that you have been bankrupt before makes absolutely no difference. You only have to mention it if it was within the last 2 years so no problem there.
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By Geraldine
Hi cpharo2812

I agree with Hayden. It seems as though you would be better off cancelling your IVA and going bankrupt. You are allowed to do this at any time.

You IVA company is not correct about the expenses budget. I think they were trying to sell the IVA to you. As Hayden has said if anything the OR will allow higher amounts in your living expenses. They certainly will not be any lower. As such any IPA you get will be no more than your IVA payments and will only last 3 years!

The fact that you went bankrupt 9 year ago will have no affect. The OR will not treat you any differently.

If you want more help with this let us know. :)