IVA Advice, Help and Information on Setting up an Individual Voluntary Arrangement - IVAAdvisoryService.co.uk

UK Bankruptcy and IVA comparison

Bankruptcy should only be considered as a last resort. It is a lose-lose situation for you and your creditors. You could be forced into Bankruptcy only if your creditors consider they have a better prospect of recovering what you own them.

UK Bankruptcy

Bankruptcy is always advertised - Bankruptcy applications are advertised in the London Gazette and the local paper where you live.

• Notification is made to everyone financially connected.
  Your bank, building society, creditors, landlord, etc are informed immediately.
  
• Bankrupts cannot usually run a business.
  
• Normally, any business you own will be closed immediately.
  
• Future assets will be lost - Any asset that might have been acquired during the term of the bankruptcy, such as inheritances, insurance payout's/maturities, equity in property, windfalls, etc., and possibly pension income.
  
• All accounts closed - Bank accounts, credit cards will be closed. Anything that is being purchased by lease or HP, such as your car, will be immediately returned to its owner.
  
• Previous Bankrupts - People that have been bankrupt before should be very careful about being made bankrupt again, as the minimum period of bankruptcy is 5 years, and could continue for up to 15 years before being discharged.
  
• Professional & Business Status - Certain employment situations will be prejudiced by being declared bankrupt, and professional and business status will be lost.
• Membership of many associations and societies will also be lost.
  
• Interview by an Official Receiver - You'll be questioned as to how or why you fell into difficulties. If your behaviour was considered to be rash or hazardous, you may be subject to a Bankruptcy Restriction Order.

Bankruptcy is the last resort - Have you considered an Individual Voluntary Arrangement (IVA) first ?