Bankruptcy v IVA

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dw1983

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Post by dw1983 » Tue Aug 10, 2010 5:09 pm
Does anyone know which affects your credit rating more and for more time got a friend asking me for advice
Iva completed
 
 

Andrew Graveson

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Post by Andrew Graveson » Tue Aug 10, 2010 5:47 pm
Hello dw1983,

I'm not sure that there's much difference between the two.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company
Website: www.brightoak.co.uk
 
 

kallis3

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Post by kallis3 » Tue Aug 10, 2010 6:04 pm
They will both stay on your credit file for six years.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

dw1983

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Post by dw1983 » Tue Aug 10, 2010 8:19 pm
Thanks I thought there was more of a stigma attached to bunkruptcy is there any further restrictions than when in an iva
Iva completed
 
 

Skippy

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Post by Skippy » Tue Aug 10, 2010 8:28 pm
There are some restrictions when you are BR, and these can carry on for up to 15 years if you get a Bankruptcy Restriction Order.

The main restrictions are you cannot take credit of more than £500 without informing the creditor first, you cannot be a director of a company, you cannot work in some jobs (MP, councillor etc).

Although the BR will drop off your credit file after 6 years, if you are asked in the future if you have ever been BR you must answer truthfully otherwise you are committing an offence.
 
 

dw1983

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Post by dw1983 » Tue Aug 10, 2010 8:55 pm
Thanks skippy
Iva completed
 
 

Skippy

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Post by Skippy » Tue Aug 10, 2010 9:27 pm
I should have said that only the most serious cases would get a long restriction order.
 
 

Adam Davies

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Post by Adam Davies » Tue Aug 10, 2010 10:18 pm
Hi
I think it is safe to say that they both have a similar affect on your credit rating
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Andam Davies
 
 

MelanieGiles

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Post by MelanieGiles » Tue Aug 10, 2010 10:21 pm
Future lenders may take a dimmer view of the fact that you are an ex-bankrupt, rather than someone who has successfully contracted to repay their debts via an IVA. But it all really depends on who you approach, what security you can give, and what the money you want to borrow is going to be used for.
Regards, Melanie Giles, Insolvency Practitioner
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