IVA vs. BR

silverlining?

Morning,
I obviously know all the main differences between the two, but I wondered, are the long term affects any different. Ie, is an IVA 'seen as' better over bankruptcy, or are they exactly the same affects long term?
I have no assets and rent our home

Thanks

Anondebtadvisor

Hi Silverlining

Both BR and IVA are formal insolvencies and will both affect your credit rating for 6years.

If you have a disposable income you may need to pay this for 36months in BR or 60months in an IVA.

What long term affects were you thinking may affect you?

FoggyBrain_2

In future lending ( mortgages etc) the more often question used to be asked was "Have you (ever) been bankrupt (in the last 6 years)! ". However, more and more are asking if you have made any arrangement with creditors, which includes IVA's. So the difference there is diminishing.

I think there is still more stigma attached to BR, but, again, this is changing. However, many occupations will not allow BR, but still accept IVA's.

In the shorter term, BR can't fail during it's course, whereas an IVA can.