Bankruptcy/IVAs and Travelling/Emigrating

[kaialulu]

Hi

Can anyone tell me answers to the following questions (I am a UK citzen):

Can you travel outside the UK (on holiday) when you are bankrupt / serving an IVA term?

If you have an IVA, how does this affect your credit rating and for how long - i.e. how long before your record is completely clean?

And what about bankruptcy - how long before you are completely neutral again?

Does IVA/Bankruptcy affect your ability to leave the country permenantly - namely to America or Australia - and if so, for how long - will it stop you moving away for the rest of your life or only for a few years?

Do you have to declare the fact you've been bankrupt/IVA for the rest of your life?

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Basically I want to move away in a few years to US/Australia but right now I am in a LOT of debt and am considering the options of IVA or Bankruptcy but I am worried about how it will affect my future in terms of credit and moving abroad for good...

Thx

[girl with sharp teeth]

Before answering your questions, I want to stress that before making a decision about whether to take out an IVA or go bankrupt you need to seek independent professional advice. There are many options open to people who need help with their debts and taking the wrong route could make matters worse rather than solve them. Many courts won't even allow you to petition for your bankruptcy without first having sought professional advice.

There are many free advice agencies that can give you unbiased qualified advice. Speak to them before making a decision. They can offer an extraordinary amount of help and practical support.

Citizens Advice Bureaux (http://www.nacab.org.uk/index/getadvice.htm#searchbox)

National Debt Line (http://www.nationaldebtline.co.uk/)

Consumer Credit Counselling Service (CCCS) (https://www.cccs.co.uk/debtremedy)

All of these are national charities that are there to help you, not make money out of you. The CCCS link is to Debt Remedy, which can give you professional standard advice without you having to pick up the phone, or speak to anybody. For 20 minutes of your time, please please please go and ask one of these organisations for help.

Can you travel outside the UK (on holiday) when you are bankrupt / serving an IVA term?Yes. The restrictions that are imposed on an undischarged bankrupt are things such as being barred from practicing as a solictor, accountant, director of a limited company, taking out more than £500 of credit and so on.

If you have an IVA, how does this affect your credit rating and for how long - i.e. how long before your record is completely clean? Everything on your credit record remains for 6 years. Therefore, as an IVA generally lasts for 60 months, you are looking at 5 years while the IVA is current plus the 6 before it no longer appears.

And what about bankruptcy - how long before you are completely neutral again? See above. A typical straightforward bankruptcy tends to last between 6 months to a year before you are discharged and the restrictions are lifted. It would remain for 6 years after you received your discharge notice.

Does IVA/Bankruptcy affect your ability to leave the country permenantly - namely to America or Australia - and if so, for how long - will it stop you moving away for the rest of your life or only for a few years? It doesn't affect it in the sense that you are restricted from moving away. It may be a factor if you apply for permanent residency elsewhere as some countries have strict rules about foreign nationals proving self sufficiency.

Do you have to declare the fact you've been bankrupt/IVA for the rest of your life? If you apply for a credit product in the future the application may ask if you have ever been declared insolvent in the past. Failure to disclose this is fraudulent.