Once an installment order is in place, how does it affect your credit rating?
I appreciate that this is a very old thread on Installment Orders, but it is very informative. My credit union, to whom I owe a certain amount of money borrowed to fund a family business, which is now liquidated, is offering me 2 choices regarding my borrowings… first choice they will extend the term of my loan out to 20 years, reduce my monthly repayments to c. €250 down from c. €350 (10 yr term loan), but even at this I cannot make the repayments, only just getting back to work etc. and the end cost of the loan will be huge! at an interest rate of over 7.5%, second choice…they take out an installment order on me, go to court and agree an amount I can pay (I have already offered to pay them €150/month) and that would be matter solved, but…how would this affect my credit rating, as I said previously we are only now just getting our feet back on the ground, and still have to sort out personal guarantees with the bank, post business liquidation, we have told the credit union that we can’t be seen to do some type of sweetheart deal with them and come to zero arrangement with the bank.
Please note I have been making regular payments into my loan account with the credit union and have kept an open communication channel with them, but the idea of an installment order frightens me, will I be “persona non grata” for ever more in the eyes of every financial institution?