Advice / Information


Bankruptcy vs IVA


Much like an IVA, bankruptcy is another option for dealing with your debts but is often looked upon as a ‘last resort’. For some people bankruptcy may be the ideal solution for their debts and circumstances, for others an IVA may be more suitable.

In summary if you haven’t got any high value assets, live in rented accommodation and don't have an affected occupation then bankruptcy could be your best option.
If you are a homeowner and do not want to lose your home; your occupation is excluded from bankruptcy and you have assets you want to protect then an IVA may be more suitable for your situation.




Is it publicly advertised

Details of your IVA can be found on the insolvency register on the internet

Bankruptcy orders are advertised in your local paper and the London Gazette

Can i still run my business?

Yes, you can still run your business as a company director and can keep your professional status (Accountant, solicitor, police officer etc)

You can still continue to trade as self employed, but not as a limited company, certain occupations are also affected (accountant, lawyer, company director)

Can i keep my assets?

Yes, you can exclude some assets from your IVA Proposal

Any high valued asset will be sold by the trustee to raise capital to pay back to your creditors

Can i keep my bank account?

Yes, although some facilities may be removed in some circumstances

Your accounts will be frozen at time of bankruptcy, it is down to the discretion of the bank whether to let you have your account back, you will still have a bank account during bankruptcy.

Do i have to go to court?

No, your insolvency practitioner will attend the creditors meeting on your behalf, you do need to be available via telephone at the time of your creditors meeting

You will need to go to your local court to hand in your bankruptcy petition and statement of affairs, you need to attend in person to swear an affidavit to state the details in your petition are true and correct

Will i be debt free?

Yes after you have completed your IVA any outstanding amount will be wiped off

Yes once bankrupt all of your unsecured debts will be wiped off

How long does it take

IVA is usually active for around 5 years

You can be discharged from bankruptcy automatically in 12 months

How much does it cost

You will be required to make a monthly repayments for 60 months

If you have disposable income left at the end of the month, you could be subject to an income payment agreement (IPA). IPA requires you to pay a monthly repayment over 36 months.