Money Advice Guide

First, understand that filing bankruptcy should be a last resort if you have borrowed money and have absolutely no way or repaying it. Filing for bankruptcy will have a negative effect on your credit history for 10 years or longer and may also adversely impacts your quality of life.

If you do declare bankruptcy, here are some things to expect.
First, you will need to be prepared to explain to a bankruptcy judge or trustee how you got yourself into such a financial pickle. You will be asked some very tough questions and need to be ready with good answers. It will not be an easy or fun task.

The only credit cards you will probably be allowed to keep are those that were completely paid off before you declared bankruptcy. You will most likely lose all others.

Once you file for bankruptcy, you will have trouble getting a mortgage, a loan, new credit cards, life insurance and even some jobs. This is because there are employers who are skittish about hiring people who have filed for bankruptcy as they feel it demonstrates a lack of restraint or self-discipline.

Some of your debts will not be discharged. This includes child support, student loans and back taxes. So if you think filing for bankruptcy will relieve you of that $12,000 you owe Uncle Sam, think again.

Keep in mind that a bankruptcy will stay on your credit report for at least 10 years. This means that if you’re 35, you’ll be 45 before you can apply for a credit card, a mortgage, a loan or a job without the potential lender or employer seeing that you were once bankrupt.

The good news

Despite what you may have been told, it is possible to get a loan after filing for bankruptcy. It is called a bankruptcy loan and its purpose is to help you get back on your feet and reestablish your finances.

A bankruptcy loan is usually available only after your creditors have been paid and your bankruptcy dismissed. If you filed a Chapter 13 (reorganization) bankruptcy, your creditors must be paid in full before you apply for a large loan. And if you filed a Chapter 7 bankruptcy, you must wait at least two years after the bankruptcy to apply.

The best way is to prove to potential creditors that you are no longer a bad risk is by paying all your bills on time, and showing that you can now handle a credit card. Once you have a track record for paying your bills on time, and have successfully maintained a credit card, you can ask your creditors for reference letters to prove to potential lenders that you have become credit worthy.

You should also know that there are lenders out there who will offer you a loan while you are still in bankruptcy as a way of paying off your creditors. Don’t be lured into this. It usually just paves the way for further disaster as you are simply adding debt to debt. As a wise man once said, you just can’t borrow your way out of debt.

Going through bankruptcy can be a painful and embarrassing experience. Be sure you consider all possible alternatives before filing. You might find that bankruptcy is easy to get into but very, very difficult to get out of.

Here’s a good idea. If you’re looking for a great place to vacation, choose Denver. Denver is pretty unique in that it offers the best of two worlds — the fun things to do and see that you find only in a big, sophisticated city, and the breathtaking scenery, unforgettable vistas and amazing wildlife you find only in our nearby Rocky Mountains. To learn more about the best Denver vacation, just go to Just go to http://www.best-denver-vacation.com

Douglas Hanna has lived in the Denver area for nearly 35 years and is an expert on both Denver and Colorado. He is also the author of more than 120 articles on Denver and Internet marketing.

Tags: bankrupt, bankruptcy, bankruptcy information, file bankruptcy, filing bankruptcy, personal bankruptcybankrupt, bankruptcy, bankruptcy information, file bankruptcy, filing bankruptcy, personal bankruptcy

Share This

What Is an IVA

The IVA (Individual Voluntary Arrangement) was introduced by The Insolvency Act of 1986 as an alternative to bankruptcy which benefits both the debtor and the creditor. An IVA enables people facing financial difficulties to come to a formal agreement with their creditors rather than having to face bankruptcy.

The IVA represents an exciting new opportunity to those facing serious debt to both avoid bankruptcy and to make a fresh start.
In this article, we’ll answer the most frequently asked questions about the IVA.

What Are the Advantages of an IVA

• With an IVA you only pay back an agreed percentage of your debts
• While an IVA is in place, it is illegal for your creditors to harass you
• With an IVA, interest on your loan is frozen which means that your debt won’t keep growing
• An IVA doesn’t affect your professional status or ability to hold public office like bankruptcy does

What Are the Disadvantages of an IVA

• If you don’t stick to the terms of your IVA then the insolvency practitioner or your creditors can make you bankrupt.
• If your circumstances alter which means you can no longer afford the payments, your IVA may end if the insolvency practitioner is unable to convince your creditors to accept a new agreement.

How Do I Set Up an IVA

1. With the help of an insolvency practitioner, you outline a debt repayment proposal which clearly demonstrates how it benefits your creditors and which shows what funds and assets are available for them.
2. Then you apply to the court for an interim order. If this order is granted then the creditor cannot petition for bankruptcy.
3. The creditors then meet to decide whether or not to accept your proposals.
4. If the creditors approve your proposals, they are binding on everyone who had notice of the meeting. If this happens, the insolvency practitioner takes charge of the assets which are administered for the creditors in line with the proposals.

Recommended IVA Body:

Clear Start is an independent free IVA helpline offering IVA help and advice to anyone in the UK.

To contact an IVA adviser click here: IVA ADVICE or telephone freephone 0800 138 5445.

Who Might Benefit From an IVA

An IVA can help anyone experiencing debt problems- particularly those who own property which they would risk losing if they were to be made bankrupt.

An IVA might be a good idea for you if you if:

• You owe money to people or companies that wouldn’t agree to an informal debt management arrangement
• You’ve already tried an informal arrangement, but it’s failed.

  Can I Get an IVA After I’ve Been Made Bankrupt

  The Enterprise Act of 2004 introduced new rules on how to get an IVA after you are made bankrupt.

  This involves applying for what’s called a Fast Track IVA by presenting a proposal to the Official Receiver.

  If The Official Receiver thinks that your creditors would do better to accept an IVA rather make you bankrupt, he/she might agree to act as supervisor of the IVA. If the IVA is agreed by your creditors, your bankruptcy order will be annulled by the Official Receiver.

  Where Will My IVA Details Be Stored

  The record of your IVA is kept on a public register and anyone can search to see if someone has an IVA. Records of your IVA are also held credit reference agency files for up to six years.

  Details of your IVA will stay on the public register until it is completed. You can search the register by using the contact details below.

  The Individual Insolvency Register
  The Insolvency Service
  5th Floor, West Wing
  45-46 Stephenson Street
  Birmingham
  B2 4UP
  Tel: 0121 698 4000
  Fax: 0121 698 4406

  Mike Curry runs a free IVA and consumer debt helpline offering impartial advice to those suffering from serious debt.

  Tags: bankrupt, bankruptcy, debt problems, individual voluntary arrangement, ivabankrupt, bankruptcy, debt problems, individual voluntary arrangement, iva

  Share This