Bankruptcy Disadvantages

There are many long term implications with Bankruptcy which need to be considered before you make your final decision. Below are a brief list of some of the disadvantages of bankruptcy:

• All available assets will be sold to your creditors, this can include your home or your car.
• Some future career prospects may hindered.
• Any spare income will be paid to your creditors.
• Bankruptcy remains on your credit file for 6 years.
• Your Bankruptcy Order will be advertised in your local paper.
• Certain debts cannot be written off.

 

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)