I am currently deciding which path to follow. I am £39 000 in debt and due to a divorce I am forced to go into IVA or bankruptcy. I am put of by the budget I have to live within over the next 5 years if I enter an IVA. With inflation rising every day I see it difficult surviving on £180 per month for food and household items. I don't have any assets so I am now considering bankruptcy but the thought scares me a bit. I am concerned that it will implicate future employment possibilities. Can anyone please give me some insight on their bankruptcy? How it has affected their lives etc.? Has it affected your employment?
I am an IT professional so it would be very likely that future employers will be finance houses. I am thus unsure if a bankruptcy will affect future employment.
Hi ben it's certainly not a profession excluded by bankruptcy(BR). Your present employer may guess if they are notified by the Inland Revenue that your tax code has changed to NT. BR is not the only reason this would happen but it's something that could be summised. As for future employment, they won't know if you don't tell them. You're not obliged to do so unless the application form asks the question.
Yes I am currently dealing with an IP and this is the budget they worked out according to the guidelines. If I decide to go for bankruptcy I would tell my current employer as I feel they would understand. I am worried as most finance houses will run credit checks against you before employing you. The way I understand it that your credit file will be affected for 6 years in either event but bankruptcy would have a heavier penalty?
Hi Ben credit histories on file, due to the statute of limitations, go back a maximum 6 years so the BR "drops off the end" at this point. There are other methods whereby BR's can be traced back much further than that though.
Obviously the details of both your expenditure list and your circumstances are difficult to go through thoroughly on the forum. If you'd like an informal chat to see if BR appeals to you by comparison to IVA, please send an email giving me your contact number and when is a good time to call. Email address is john.white@bankruptcyhelp.org.uk If you do, having the details of the I&E proposed by the IP to hand would help.
bankruptcy or IVA?
Posted - 14 August 2008 : 20:09:11
