What is my best option? Bankruptcy or an IVA. Difference between IVA and Bankruptcy
In the current economic climate and recent financial downturn makes it ever so more difficult to decide which one is your best option to help you get out of debt. Ideally for a person who has debts of over £15,000 there are three options that management plan, an IVA or bankruptcy.
While debt management plans are more targeted towards those with debts of up to £10,000 or less than £15,000; four people with debts of £15,000 or more it is advisable to take an IVA rather than going bankrupt. Although individual voluntary arrangement has been around for some time, it is unfortunate that not many people actually know a lot about it.
Hence why we have compiled a list of differences between an IVA and bankruptcy to help you understand which one of these two could be your best option. If you have decided that you want to work with an insolvency practitioner, he/she will be able to tell you which one of these is your best option but it is very important that you yourself understand which one you think would suit you better. At the end of it all, it is your financial situation and your future that is concerned.
If you have a regular income then it is highly advisable that you cannot think about bankruptcy and find out more about how individual voluntary arrangement could help you get out of debt.
Please read below the main advantages and disadvantages of bankruptcy and issues that are concerned in dealing with bankruptcy.
If you do decide to declare yourself bankrupt than at the end of your bankruptcy you will be cleared of all your debts immediately
when the bankruptcy is finished you are free from any financial responsibilities or the debts
if you have a job and earning good amount of money then your creditors may well ask you for money even if you have been declared bankrupt
if you inherit any money whilst you are under the bankruptcy order you may have to pay back some of your debts
in the course of your bankruptcy if you are lucky win a lottery and come into some money, under the bankruptcy act in the have to pay back your debts either in part or in full
under the bankruptcy of your pension rights can be affected
unlike either bankruptcy is actually a public matter and it will be available in the public domain for anyone to find out
most distressing or, if you own a house, your credit or trustee we want you to either sell your house or refinance your property to release equity
If a bankruptcy procedure is not carried out properly or if you have undisclosed property; it is considered as a criminal offence. Your trustee or creditors can take you to court on trial if you do have any undisclosed properties.
In contrast to a bankruptcy, the best thing about an IVA is that your home is totally secured. There are no social stigma attached to it, your friends and family will not have to know that you have gone bankrupt; you are given 60 months to make a payment to all your creditors. He will be paying an affordable amount of money, and at the end of which he will become debt free. Read here for more details on the benefits of an IVA
Why use us to set up your IVA?
If you have debts over £15,000 than our Insolvency Practitioners can help you by proposing an IVA plan for you. Our Practitioners are industry regulated with many years experience in dealing with people like yourselves. We believe in providing honest, professional and reliable service. Fill out our online no obligation enquiry form to arrange a callback from one of our specialist Insolvency Practitioners. They will be happy to listen to you and devise a plan that is best suitable for your situation.
