Consequences of Bankruptcy

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jeremy
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by jeremy » Thu Jun 28, 2018 2:28 pm
Would I be better off going for bankruptcy than staying with the IVA and what would be the consequences ?
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Foggy
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by Foggy » Thu Jun 28, 2018 2:52 pm
It depends on a whole raft of circumstances. Do you have any assets to protect (car, house, etc) ? Would BR impact on your job (some employers will accept an IVA but not BR? ? You would still probably have to make three years payments at a similar level than the IVA. The setting up of BR is far more intrusive than in an IVA and the OR can be more forceful and you will, at least for a time, be frozen out of your bank account. Many institutions, going forward, do look on BR more harshly than an IVA and your credit record will still be shot for the full 6 years.

Why are you contemplating the change ?
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kallis3
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by kallis3 » Thu Jun 28, 2018 3:24 pm
How long have you been in your IVA?
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Lisa Thomas
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by Lisa Thomas » Fri Jun 29, 2018 8:17 am
Here is my video on the Pros and cons of bankruptcy:

https://youtu.be/mAkQsVSCnqo

Pros:
Most, if not, all debts are written off

Cons:
    Your assets at risk of being repossessed and sold
    Any windfalls received whilst BKPT will have to be paid into BKY estate unless and until total debts, interest and costs have been paid in full
    Can't be a Director whilst Bankrupt
    May have to pay contributions from income into Bankruptcy estate for 3 years
    Credit Rating damaged for 6 years from start of BKY Order
    Iva will have likely been an academic exercise as you will be starting again
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