Future Implications of Bankruptcy vs PIA

[Magpie]

I'm currently dealing with possible repossession, proposing shortfall write offs, etc etc. I believe we have a fairly good handle on the options available and have a 3 stage plan of action. All fine.

However what I am having a lot of trouble pinning down is the ACTUAL future implications of both bankruptcy and personal insolvency deals. Everyone seems to have a different answer, and nowhere can I find anything definitive.

What I want to know is this:

How do credit ratings work after a) Bankruptcy and b) PIA's?
IS there a way to "repair" a credit rating over the years? Is future credit impossible? Is a future mortgage impossible? If not, how does one go about improving chances? Will getting insurance etc be a problem? Are there other implications we don't know about? How does it work after these options have been completed?

And crucially, is one or the other (Bankruptcy or PIA) a clearly better option RE the above possible future implications?

I understand how the possible routes will affect me NOW and deal with my debt problem in different ways. What I need to know is the implications for the future.

Thank you in advance.

 

[epicaricacy]

Magpie

The reason you're probably getting different and therefore unsatisfactory answers is that no one knows for sure as of yet. It's too early to say what adversarial effects either option will have on medium / long term credit rating - as this will depend on the future attitude of the banks.

Our bankruptcy will remain on the ICB for 6 years post discharge and we've concluded that no credit will be available to us for this period e.g. mortgage, credit card, car loan, credit union loans etc. There is no way of knowing what the long term credit implications are for people who've successfully petitioned for bankruptcy - but I think it's safe to conclude that bankruptcy would have more of a negative effect on people's long term credit rating than a PIA.

My advice would be to seek a PIA over bankruptcy (particularly Irish Bankruptcy) - especially if you want to become a homeowner in the future. We don't have children and are therefore more suited to long term rent than a couple / person with children.

It can be difficult to even open a basic bank account post discharge.

Insurance is not a problem.