Understanding Bankruptcy and IVAs Quiz

Which of the following is NOT a reason for being declared bankrupt?

• Owing £5,000 or more and not being able to pay your debts

• Breaking the terms of an IVA

• Choosing to declare bankruptcy voluntarily

• Agreeing to pay your debts in full

What happens to your assets if you are declared bankrupt?

• They are protected from creditors

• They can be sold to repay your debts

• They remain untouched

• You can keep all your assets without any restrictions

Which of the following is NOT a restriction of bankruptcy?

• You may be banned from owning a business

• Your name is added to the Individual Insolvency Register

• You can continue to apply for new credit freely

• You will have limitations on financial activities

How long is your name on the Individual Insolvency Register if you are bankrupt?

• Forever

• 3 years

• 6 years

• 10 years

What can an Individual Voluntary Arrangement (IVA) help you avoid?

• Bankruptcy

• Paying any debts

• Getting a job

• Legal action from creditors

Which of the following is a benefit of an IVA?

• You can keep all of your assets

• You are allowed to keep some items, like household goods

• Your creditors will stop the repayment plan

• It guarantees that your mortgage is paid off

If you enter an IVA, who manages your payments?

• Your creditors directly

• A government agency

• An Insolvency Practitioner (IP)

• A credit card company

Which of the following debts cannot be included in an IVA?

• Mortgage arrears

• Personal loans

• Credit card debt

• Utility bills

How long does an IVA typically last?

• 1 year

• 3 years

• 5 years

• 10 years

What happens to remaining debts after an IVA ends?

• They are written off

• They are increased

• You continue paying them

• You are required to pay more money