IVA vs Bankruptcy

Individual Voluntary Agreement (IVA) Personal Bankruptcy
Prior to application Stable occupation and income Lack of loan repayment ability
 

During application
Provide your net worth Need to reasonably explain the transfer of assets in recent years
May need to explain the reason for new recent loans May be legally liable for new loans made within six months
 During execution
No bankruptcy status Have bankruptcy status
Will not inform applicant’s current employer, so current job will not be affected If applicant is in a sensitive industry (such as disciplinary force or financial industry), the employer needs to be notified, and the current job may not be retained
  Will not inform applicant’s current employer, so current job will not be affected If applicant is in a sensitive industry (such as disciplinary force or financial industry), the employer needs to be notified, and the current job may not be retained
No restriction on excess income after monthly repayment After basic living expense is deducted from monthly income, the balance will be arranged by the bankruptcy officer to repay the debt
  Nominee manages issues related to repayment Bankruptcy officer monitors daily life
Can serve in a management role Cannot serve in a management role
  Can continue to run businesses Cannot continue to run businesses
Can keep existing professional license Some professional licenses (such as accountant or lawyer license) cannot be retained
  Most applicants can keep their existing properties The property will be sold by the bankruptcy office
Can keep insurance coverage
Need to cancel insurance coverage
  Should avoid borrowing new loans as most banks or financial institutions will not accept their loan applications According to the law, if the applicant borrows more than 100 dollar, the applicant must declare bankruptcy status
Able to enter and leave HK Restrictions on HK departure. The bankruptcy officer must approve the itinerary.
Able to enter and leave HK Restrictions on HK departure. The bankruptcy officer must approve the itinerary.
Able to travel at the applicant’s own expense
Not able to travel at the appliant’s own expense
Generally duration is three to seven years, depends on debt owed and repayment amount
Generally duration is four years, but can be extended to eight years depending on the applicant’s discipline during bankruptcy
The nominee will review the debtor’s income and financial status annually for reporting to creditor
Every year the applicant need to fill out a detailed statement of income and expenditure to the bankruptcy officer
After the execution period
No bankruptcy record, less impact to credit rating
Bankruptcy record lasts forever, seriously impact credit ratings

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大部份銀行做到0%利息,即時可以停止追數滋擾,最短可以兩個月完成,視乎客人需要,每個月供款可以即時減少一半或以上,亦可以大大縮短還款期數

Chris Lui理財顧問