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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