IVA and Bad debts and Naturalisation

[Miss Row]

Hi Everyone.
I currently have alot of debt that i have been struggling and have not been able to repay the monthly installments for the last 6 years. I took two bank loans 7 years ago and paid monthly installments for an year. I lost my job 6 years ago and was unable to continue with the repayments.
I have a ccj for around 10,000 pounds that i need to re pay back on one of the bank loan and i still have around 12,000 that i need to pay back on the other loan that is in default. I now have a job and i want to set up an iva to pay back my debts.

Please can anyone advise me if an iva which is a form of insolvency will affect my naturalisation to British citizen.
I am planning to apply for naturalisation this month of april and then set up an iva with my debtors next month.

Thanks.

[Casa]

Outstanding CCJs may go against you.
6.2 Debt
The decision maker will not normally refuse an application simply because the
person is in debt, especially if loan repayments have been made as agreed or if
acceptable efforts are being made to pay off accumulated debts.
However, where a person deliberately and recklessly builds up debts and there is no
evidence of a serious intention to pay them off, the decision maker will normally refuse
the application.

https://www.gov.uk/government/uploads/s ... _D_v02.pdf

[CR001]

DO NOT do an IVA. An IVA is recorded on the Insolvency Register and is legally binding. HO always checks the Insolvency Register. IVA is one down from full bankruptcy. DO NOT do a Debt Relief Order either, second down from full bankruptcy.

Contact Payplan or National Debt Line or Citizens Advice Bureau to set up a proper payment plan with your creditors and stick to it.

CCJ's if you have any are not good as Casa has said and you really should have addressed the debt issue a long time ago rather than let it get to this stage.

[Miss Row]

Thanks Casa and CR001 for your replies.
I seeked advise from citizen advise bureau and they advised due to the high debt plus interested charged on it. I can only qualify to payback by setting up an iva. ( Due to interested the debts is now nearly 30k.)

The advisers don't know the impact of iva and british citizenship.
Bankruptcy was the second option given if iva can not work, but they are sure it will affect British citizenship for atleast 3 years.
I am now really confused if to set up an iva or go bankrupt and look on applying citizenship after 6 years.
Please help with advise as both payment plans seems not favourable.
Thanks.

[Casa]

As CR001 has already advised, both IVA & bankruptcy are very likely to adversely affect your BC application. Even more so with the high level of debt.

[Rubablu]

Hi Everyone.
I currently have alot of debt that i have been struggling and have not been able to repay the monthly installments for the last 6 years. I took two bank loans 7 years ago and paid monthly installments for an year. I lost my job 6 years ago and was unable to continue with the repayments.
I have a ccj for around 10,000 pounds that i need to re pay back on one of the bank loan and i still have around 12,000 that i need to pay back on the other loan that is in default. I now have a job and i want to set up an iva to pay back my debts.

Please can anyone advise me if an iva which is a form of insolvency will affect my naturalisation to British citizen.
I am planning to apply for naturalisation this month of april and then set up an iva with my debtors next month.

Thanks.

Hi
Do you have any update ? Have you applied ? What is the result ? I am in a similar situation