Answer: You ask a very good question. In both an IVA and bankruptcy, a detailed income and expenditure form is completed, and you need to try and be accurate and realistic as possible for both, but I have found that in bankruptcy, while the expenditures allowed are basically the same, it seems to be more lenient. This doesn't mean that the Receiver may not question certain expenses, or you are allowed more for food or household items.
In bankruptcy once an income and expenditure form has been done and reviewed by the Receiver, any surplus of income that exceeds £20, is taken for the bankruptcy for a period of three (3) years. So you may not be making the same payments as in an IVA.
I hope this has answered your question.
For more information and assistance, please complete our eligibility form at our web site www.bankruptcy.org.uk or ring us at 0800 0029951.
Regards,
Jon
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