Any Advantages between IVA v BR

[Darren]

After spending 5 years paying into an IVA after satisfying/completing... does it then stay on your credit report for another 6 years after?
Also what is the difference... after going Bankrupt then after 6 years when it is removed from your credit report (experian)
What are the advantages of an IVA over a BANKRUPTCY Cheers Darren.....[?]

B word not as bad as you`d think ? (im gonna find out soon)Since found out and turned out great!!!

[Sadsack]

Hi Darren

After completing an IVA - 5 years - the IVA status remains on your credit report for a further year even though a certificate of satisfaction is placed on your file.

The difference between BR and an IVA - BR seriously affects your credit rating (you have to disclose this if you apply for a mortgage etc), you don't get good interest rates either. An IVA will affect your credit rating but this can be repaired over time, you can apply for a mortgage whilst in an IVA (with permission of course), if you are a home owner, you don't lose your house - basically BR is the last step one would take.

Being BR lasts for 3 years, you get discharged after 12 months (providing you co-operate fully with the OR), you have an Income Payments Arrangement if you have surplus income and this is paid for 3 years.

Hope this helps

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Darren]

I thought after 6 years... this being erased, leaves it to the person to decide to disclose as no one now knows? i dont think i will mention it after 6 years....and when i renew my mortgage i could leave it to a variable rate for 1 year as im in a fixed term for 5 years then get a nice low rate lol (theres wishing)....and at the moment fail to see the difference at the moment still between the 2 apart from giving money to one and not the other....any other views would be appreciated....

B word not as bad as you`d think ? (im gonna find out soon)Since found out and turned out great!!!

[bagpuss]

with a BR your name is in the paper...IVA it isnt.



Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[Skippy]

Darren, if you apply for a mortgage or bank account you may well be asked if you have ever been BR. You must answer yes, otherwise you will be committing an offence.

Basically, for the rest of your days, if you are asked if you have ever been BR you will have to answer yes.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[mish1953]

Darren
In terms of beer IVA is like bankruptcy lite, its still going to give you a hangover but just not quite as bad.. you have a mortgage .. so I guess that you have a house you could lose it in BR.
ALL your assets are taken over by the OR if you go BR, some they may not be intrested in other they will take off you, you have to justify owning a vehicle , if you have a high end tv or stereo you could lose it, some have lost their CD collections, some moutain bikes , I had my motorbike taken off me , bank accounts are massively difficult to get if you are BR, so are not allowed to work in certain areas if BR - some employers will not emloy you. Renting property is very difficult if not impossible in BR . You may have to pay the OR for 3 years .

BR is not easy you may find that your friends /family dont like you any more, it does effect you and your kids emotionally.

Read everything you can and ask as much as you like here - but for heavens sake make sure you fully understand what it means before going BR .

Slainte
Mish
BR since July

[tygar]

Basically, for the rest of your days, if you are asked if you have ever been BR you will have to answer yes.

Hello Everyone.

Just some questions so I understand this.
What happens after year 6? Is a completed IVA erased from your credit file or is still there?
Is bankruptcy permanently on your file or the same rules as an IVA apply?
I have read here that a credit rating affected by an IVA can be repaired over time. Can a credit rating affected by BR ever be repaired?

Thanks for all your help!

[MelanieGiles]

Hi Tygar

The IVA will be removed from your credit file six years after the date it was originally accepted, as in bankruptcy it will be removed six years after the date of the bankruptcy order. So credit ratings can be repaired with time.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[tygar]

Hello & thanks for the replies.

If BRs and IVAs come off your credit file does this mean after 6 years a person who had an IVA is no better than a person who went BR?
I read somewhere on this forum that credit referencing agencies treat an current IVAs the same as BR - is this true?

Certain proffessions cannot be entered into if you are BR. After 6 years you can you enter them - is this true?

If the above is true am I right in understanding that for the typical person the difference between an IVA and BR is that you have to disclose (if asked) your BR,your name appears in the local paper and a homeowner loses their house?
If asked directly, do you have to disclose an IVA? If so, am I missing something? Below is how I understand everything.

Under IVA your credit rating goes down the pan (same as BR),you struggle to get banking services (same as BR),struggle to get rented accomodation (same as BR),make payments towards your debts (2 years less under BR) BUT on your credit file you get treated the same DURING and AFTER the 6 year period.
What is the difference unless you are a homeowner? Your name in the paper is not exactly the end of the world. In an IVA you make efforts to pay your creditors as much as you can and are under more pressure for longer but are treated exacly the same as BR and given a fresh start ON THE SAME LEVEL after 6 years(from my understanding).Is this fair? If I'm right, I find this rather discouraging (am considering an IVA and dont own a home or much else).I thought going BR was worse but am now failing to see how. Are IVAs only beneficial to homeowners?

Please enlighten me! I'm actually hoping I am wrong!

[Adam Davies]

Hi
An IVA will allow you to repay as much as you can to your creditors over five years.
Bankruptcy does not return anywhere near the same return to creditors.
It really comes down to your view of your debt and your own personal circumstances.
Bankruptcy is not an easy option,but there again neither is an IVA.
Your are correct in that they have similar restrictions and an IVA is a far better option if you want to keep your property and want to keep your debts private.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Darren]

I felt this question was answered exctly how i was thinking, i did go Bankrupt and kept my home...but as stated by Andy it depends on the Individual concerned on how you view your debt, my IVA was turned down but im more than happy now, that it was, thanks all.

B word not as bad as you`d think ? (im gonna find out soon)Since found out and turned out great!!!