Bankruptcy Vs IVA

was_bankrupt

Many people are choosing an Individual Voluntary Arrangement over bankruptcy. If you have no assets to loose what benefit is it waiting 5 years for the IVA to finish when the bankruptcy can be over in six months!

Credit worthiness is one as mortgage applications usually ask "Have you ever been made bankrupt?" Surely though as more people go through IVA's the lenders will ask "Have you ever had an IVA?"

lynzpower

Some people want to try to pay back what they have spent though, as far as they can of course.

was_bankrupt

Of course, correct me if i'm wrong but from what I hear only 30% of IVA's succeed.

sparkle84

was_bankrupt wrote:

Many people are choosing an Individual Voluntary Arrangement over bankruptcy. If you have no assets to loose what benefit is it waiting 5 years for the IVA to finish when the bankruptcy can be over in six months!

Credit worthiness is one as mortgage applications usually ask "Have you ever been made bankrupt?" Surely though as more people go through IVA's the lenders will ask "Have you ever had an IVA?"

The point is IVA's are for people who have assets to protect i.e a house, or for people whose job would be effected by bankrupcy - there are lots of reasons to choose an IVA over bankrupcy - its like comparing apples and pears. Also you can't be asked have you ever been in an IVA its a contract once it is complete it is over - also most IVA's are settled at about 60/70% not 30% in fact HSBC will refuse anything under 35%

sparkle84

was_bankrupt wrote:

Of course, correct me if i'm wrong but from what I hear only 30% of IVA's succeed.

Sorry I misread you are saying only 30% of IVA succeed don't know where you get this from several people on this forum have successfully completed IVA about 30% of don't succeed would be nearer the mark.

Kazonline

sparkle84 wrote:

The point is IVA's are for people who have assets to protect i.e a house, or for people whose job would be effected by bankrupcy - there are lots of reasons to choose an IVA over bankrupcy - its like comparing apples and pears. Also you can't be asked have you ever been in an IVA its a contract once it is complete it is over - also most IVA's are settled at about 60/70% not 30% in fact HSBC will refuse anything under 35%

Does this mean that after 5 years you would be back to a clear credit file? Sorry if the info is elsewhere on here, but I can't find it.
Kaz x

was_bankrupt

I believe it is six years from the date of the IVA

netally

My OH is thinking of taking an IVA. He owes £27k but really wants to keep his house.

Thing is when he goes to renew his mortgage is this going to affect it? His credit rating is probably pretty dreadful as it is. I'm guessing he'll have to declare all this?

BTW, i'm a student with a very low income. I can't really help him other than try to give advice!

was_bankrupt

Yep - they will see the IVA on his credit file. Best thing for him to do is to take advice and declare his intention to the advisor. They will sugest the best course of action. Cannot emphasise enough how important it is to take advice.