Hi
What a good question, 3 and a bit lines long. Normally I would expect to spend more then an hour in conversation with people explaining this one while taking note of there personal situation.
I will have a go at a quick summary just to get things started, I am sure other posters will add their comments.
An IVA protects the family home from creditors while in bankruptcy the family home could be lost to pay creditors.
If there is no equity in the property the OR may not force this,
or
if there is equity in the property and you go bankrupt, it can be possible for a third party to buy the equity (i.e a family member or other person)
In an IVA you make an offer to creditors based on your disposable income after all other secured creditors and household expenses have been paid. This is for a period of 60 months, if there is equity in the property the creditors will expect equity release towards the end of the IVA.
In Bankruptcy the Income and expenditure is accessed by the OR and a maximum of 70% will be expected to be paid for a period of 36 months.
Discharge from Bankruptcy is 12 months, but the average is around 8 months.
During the period of an IVA you are not allowed credit, with out the permission of the supervisor. Prior to discharge from your bankruptcy you are not allowed credit, and to be fair the chances are you would not get credit any way.
Post Bankruptcy (after discharge) you can apply for credit but most lenders as if you have ever been made bankrupt.
Both IVA and Bankruptcy stay on your credit file for 6 years
As regard to the specific statement of not being able to get a mortgage post bankruptcy this is incorrect as there are specialist lenders out there who will lend to discharged bankrupts, these loans do carry a premium.
This is a bit long winded but does not cover all the variables but I hope it helps in some small way.
Dave Beech
Last edited by
Beechy on Thu Jan 17, 2008 12:11 am, edited 1 time in total.
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