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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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Would it be best daughter, who has an iva against her

Customer Question

would it be best for my daughter, who has an iva against her name, to be made bankrupt so that a European country, hounding her for money she does not have... she lost her home, her job, her husband in the 'crash'...will stop?
Submitted: 2 years ago.
Category: Law
Expert:  Max Lowry replied 2 years ago.
Hi, welcome to the site. My name is ***** ***** I will help you with your question. I must say I'm a little surprised that your daughter is in an IVA considering the level of debt she has and very few assets. I'm surprised the lawyer advised her to go down this route and that an insolvency practitioner recommended such a course (however, it may have been that at the time she entered into the IVA she had a job and a house and her prospects didn't look so bad - you haven't specially said).
I would say however that if her finances have changed considerably such as she has no house and no money and the level of debt is so high then unless her financial prospects are due to turn around significantly she should very much consider bankruptcy. Bankruptcy will stop creditors harassing her and all her debt will be wiped. She would be able to start again with a clean slate but her credit record will be marked for 6 years. She can however rebuild her credit and her life over time.
Bankruptcy will cover her debts in the UK and Europe (you mention Europe in the question).
Any queries/questions about her finances will then be dealt with by the Official Receiver who administers the estate.
She can download and complete the bankruptcy forms herself and take them to court with the fee.
Please let me know if I can clarify anything or you require any information.