Re: Bankruptcy for credit card debt?

Womble Song wrote:
Hi.

I owe a lot of money on credit card. I have virtually no income and
virtually no assets. Is bankruptcy a good option for me?

I am mainly interested in keeping hold of what little I have which is
basically my computer. I have nothing else of value.

Two choices - bankrupcy or IVA (what you see them advertising on the tv all the time - "little known legislation to legally cut your debt"

1) Bankrupcy, lose 99% of debts - still have to pay fines, council tax that sort of thing AFAIK - they only take stuff of real value - nice cars etc. Won't touch household goods etc and computer safe.
If you earn any money in next 12 months (win/inherit) they will want some. After 12 months all clear, but hard to get credit etc.

2) Individual Voluntary Arrangement - if your creditors agree, balance is cut to approx 25% and you pay it off over 5 years. If you miss a payent they reserve right to make you bankrupt. The firms doing it make about £2k out of the process so they keen to do it. Good for people with assets they don't want to lose - like houses and cars.

Third choice of paying a £1 a month leaves you in hock to them forever - if you ever inherit or win the lottery, they can jump back on your case.
.

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