Gambling Debts - Iva Or Bankruptcy

[brows]

Hi,

 

Im looking for some advice in relation to my debts. I have a gambling problem and have racked up approx £22000 in unsecured debt made up of loans, credit cards and overdrafts. I have admitted ive got a problem and am attending GA as well as handing over my finances to my mum for a few months while i sort my head out.

Most of the loans/cards are either with DCs or about to default. It has been a very stressful time but now my head is clearing i have 2 paths i can go down .. IVA or Bankruptcy

I had initially decided to go with an IVA but after much research and as i have absolutely no assets i started to think Bankruptcy could be the best option. The problem is the more i read peoples stories the more indecisive i become. The main thing i am worried about is the potential BRO and the impact it will have on my life. I know most of the restrictions are not relevant to most normal people but i read somewhere that it means you are not discharged for the duration of the BRO ??

Is that true or does it just mean you cannot become an mp etc for the duration of the order

Also does anyone have any info on previous posters to the forum who may have similar stories to me and how they fared with the whole BR process

 

Thanks in anticipation ...

[debtinfo]

hi, the choice you make must be your own so i cannot say which you should choose, but i can clear up a few things about the bankruptcy option, As summised if the bankruptcy was caused by gambling then it is likely you will get a BRO.

 

You will be discharged after 12 months if you co-operate fully. The restriction will apply for a further period of between 2 and 15 years (most gambling cases are about 5-8 years) the restrictions are of the sort that you cannot easily get credit, cant run a limited company etc. The differnce between the extra restictions and not being discharged is that after discharge if you receive monies such as an inheritance you get to keep them. The restictions are not particularly difficult as long as you dont want credit or to run a company.

 

I will draw your attention to this thread from another site as it is the diary of a gambler going through bankruptcy, as you will see it has not been easy but life is starting to get back to normal

 

Diary of a broken gambler - MoneySavingExpert.com Forums

 

hope that helps

[loobyloo85]

Hi there

 

For the IVA, I am sure that you must show that you have not gambled for 6 months before trying this. However it is a good arrangement for some. You can propose a surplus that you can afford to pay, and then if your creditors accept your offer, you can pay this each month for 5 years and then be debt free.

In the bankruptcy, this would take 12 months, however if you would not adversely lose your job in bankruptcy, you would need to pay into an income payment order for 3 years. You would need to take into account that bankruptcy does carry a stigma attached to it, such as it may be advertised in the local newspaper, it can affect certain professions and promotions, and it can affect future credit. Also, if you have any assets, these will be at risk, whereas in the IVA all assets are protected. xx

[stewpots]

Hi there

 

For the IVA, I am sure that you must show that you have not gambled for 6 months before trying this.

 

Most IVA’s will want to see 3 months of bank statements and if you paying party poker every night and taking money out of your account to fund then they wont be happy.

 

I would suggest get the gambling under control then go down the appropriate route

There is no point starting IVA /bankruptcy if you break the rules by continuing to gamble.

[loobyloo85]

Thanks for clarifying that stewpots, I knew you had to prove a certain amount of months x