Bankruptcy is the most severe debt solution on the market. It can often go hand in hand with repossession of your most valuable assets and as a result, it’s commonly accepted that if you’re trying to avoid bankruptcy, it’s often your best option to go for an Individual Voluntary Arrangement. There are some inherent advantages to the IVA over a bankruptcy order but for assistance in deciding what solution best suits your circumstances, drop by www.debtsolver.co.uk for a free financial health check.
An IVA can write off a significant proportion of your debt. So, provided you stick to the agreed repayment plan, which is normally over a period of 60 months, your creditors will write off any remaining debt. You’ll need to come to an agreement with your creditors, which will be brokered by the debt specialists at Debtsolver. In addition to the remainder of the debt being written off, your creditors will also be petitioned to freeze the interest and additional charges on the outstanding debt. You just have to pay a reasonable, affordable amount each month.
An IVA is also preferable to a bankruptcy order thanks to the added security it provides to your assets. Upon reaching an agreement on the terms of the IVA with your creditors, the chances of having to sell your home or any other valuable asset to pay off your debt is extremely small. This is opposed to bankruptcy as your assets are placed under the control of the official receiver or trustee.
There is no denying that, in the wake of the recession, there is a greater understanding of the multitude of causes behind serious debt problems. However, it is still surrounded by a certain stigma. Another benefit of the IVA is that it can be more private than bankruptcy because it’s not published in your local newspaper and the London Gazette, like bankruptcies. You don’t have to tell your landlord or employers and there is the chance that bankruptcy could cost you your job, not so with an IVA.
For the vast majority of people, an Individual Voluntary Arrangement, or IVA, will be a much preferred debt solution. Bankruptcy can result in the loss of your home; the IVA process will let you keep your house, although it might be necessary to relinquish a proportion of the equity. Bankruptcy is a matter of public record, published in your local newspaper; it’s possible to keep an IVA far more private. To find out which is the best debt solution to suit your financial circumstances, visit www.debtsolver.co.uk and get a free financial health check. One of our dedicated debt advisors will be able to diagnose financial first aid to free you from the burden of bad debt.
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