These formal options can free you from debt, but they have serious long-term consequences. You may influence your career and your ability to obtain loans or credits in the future. A secured creditor (for example. B a home or home loan) has the right to vote and receives dividends on the unsecured portion of its debt (for example. B if you owe more to your car or real estate credit than the value of the car or house). However, it is important to note that each bankruptcy has different consequences and therefore, depending on what it is that you arrive, you can continue your business still relatively free of side effects. For example, if you need to travel abroad, it would be affected by bankruptcy, but not by a private debt or insolvency contract. Restrictions on running a business as an individual contractor and requesting more loans apply to both a debt contract and a bankruptcy, but there are no similar restrictions if you enter into a personal insolvency contract. And when you had to resign as a director as part of a bankruptcy or private insolvency contract, you could stay in your position if you enter into a debt contract. Given the different rules for different solutions, careful consideration and planning are required before reaching an agreement. (Read the comparison of debt solutions here) A debt contract is for people with lower incomes who cannot pay what they owe. But there are consequences.

If you make all refunds under the contract, you will be exempt from the other ingredients of the contract. If you do not reach the end of the agreement, the agreement will be concluded and the creditors will again make all the fault, plus all the interest that has been incurred in the meantime. What is important is that there is no risk, that you will not be able to make your refunds and go back to where you started. If you work in one of the following roles, you may need to take a closer look at the impact of a debt solution such as bankruptcy, as you generally cannot work in these positions until you are laid off: “Dealing with debt – how to up a partnership” from www.bis.gov.uk Rushika`s insolvency department has had to face repayments on 3 credit cards and personal credit. She works, but she is a very young employee and never seems to be able to pay much more than interest on her credit cards. She came across an internet ad for a service called Beat Debt Solutions, which promised to stop the interest on their debts and wrap all her debt repayments in a simple payment. In both cases, you first try to enter into informal agreements with your creditors and ensure that you understand the consequences of entering into a debt contract and the risks involved in not entering into them. You should also note that you will have difficulty getting credit or refinancing once you are in a debt contract. Always seek advice from an independent financial advisor first. Things can get a little more difficult if you work for yourself.

The first and most obvious problem is that if you commit a bankruptcy, they will have a default on your credit file, which will affect your ability to get deliveries on credit. If you are bankrupt or are in a debt contract, it is important to note that it is an offence to get credits on a certain amount without disclosing this fact. In most cases, bankruptcy should not affect your job. However, this is not always the case and there may be problems if one of the following questions applies to you: once you have paid the agreed amount, you have paid that debt. These are mainly jobs in accounting, law or financial services such as banking. However, not all jobs in these sectors will mean that you cannot enter the IVA – it is still possible that many people in these sectors will offer an IVA.