Reversing an IVA

[ianmillington]

Unless you have a BRO (which as Viki says can extend the restriction for up to 15 years) you will be able (legally) to take up a management position once you are discharged. Doing so whilst undischarged is an offence, but it can be sometimes difficult to determine what is and what is not permissible. An undischarged Bankrupt cannot legally be "involved in the promotion, formation, or management of a limited liability company". Placing orders on behalf of the company is, for example, probably going to fall foul of that. As a result, it depends entirely what you want to do.

Finance was just an example, but it doesn't just refer to banks. Accountants will generally find bankruptcy the kiss of death to their career, insurance brokers, IFAs, Estate Agents, to name but a few. Many law firms won't employ bankrupts and many other organisations won't either - some stores won't due to fidelity insurance issues. Can you for example be the manager of a shoe shop whilst bankrupt?

Finally, just to clarify, The 3 years refers to an IPO and not the disqualification from holding office.

HTH

[icebrick]

A person whom I spoke to in the Armed forces told me that they do employ those who have been discharged from bankruptcy after 3 years but my IP told me that this is for life. Or did I misinterpret any of the information they had given?

Cheers.

[icebrick]

Another quick question; does Bankruptcy normally affect College or University Lecturers?
Cheers.

[icebrick]

I am not a lecturer but I used to teach one time and would like to get back to it again sometime.

[Viki.W]

I don't think being bankrupt stops you from being a lecturer, I think if you are under a BRO/BRU then you can't be a school governer, but not read anything about lecturer. Of course, after reading some awful stories on here, you should check with the HR department of ANY job first just to make sure, you can do so anonymously. Where are you up to now Ross, how's it going? Viki X

[icebrick]

I am going ahead with the IVA for now. I feel quite a bit uncomfortable with the decision though. I am thinking of switching to a BR from the IVA should my repayments don't meet up within the first few months. Is it really possible to come out of an IVA if I can't meet the monthly repayments?
Also what are the restrictions they have on savings accounts in an IVA or a BR? Cheers.

[kallis3]

If you can't make the monthly repayments, then an IVA will fail and you will have to resort either to DMP or BR. You are usually allowed to go so many months in arrears before your IP will take action - in my case it is 3.

Things will be tight on an IVA, we don't go out, can't remember the last takeaway we had, and as for holidays - forget it!

I would say that if you are able to economise on certain things you can save money from your expenses for social occasions.

If you read a lot of posts on here as well, you will see that people do manage to have a life whilst in an IVA. It's the light at the end of the tunnel after the despair of being deep in debt.

At least at the end of 5 years you will be totally debt free and able to start again.

[Soulgrowth]

Icebrick, I am a university lecturer and my IVA has never affected my employment in any way ... and I'm not sure that BR would have done either. The only give way may be a zero tax code, but that could be for many reasons.

Debbie

[MelanieGiles]

If you have any concerns about whether you will be unable to stick to a fairly rigid budget, and value the ability to socialise and live your life to the full, then an IVA is probably not the right option for you. Bankruptcy is less frugal these days, and is concluded at an earlier stage, although either way your credit rating will be affected for six years. Most employments these days are not affected by bankruptcy proceedings, and I think it is good that you are carefully taking time to arrive at the right decision.

[icebrick]

I think the best way to go about it is check through my past bank statements and examine my actual expenses.
BTW can a bankrupt be self-employed and be VAT registered?

[MelanieGiles]

Yes - but you do need to get the permission of the Trustee to continue to trade post-bankruptcy.

[icebrick]

Can Creditors refer me to Collection Agencies and if should what must I do when such an Agency sends in a demand of payment?
Cheers.

[MelanieGiles]

They can refer you to such agencies and you will have to deal with the incoming calls and correspondence directly until you make up your mind what you are going to do.