If you find that you are struggling with debts over £15,000 you may be wondering what debt solutions are available to you. Before you consider bankruptcy you should research about IVA, an alternative to bankruptcy.
IVA stands for Individual Voluntary Arrangement. IVAs were introduced as an alternative to bankruptcy and as part of the Insolvency Act 1986.
An IVA is seen as bankruptcy alternative, as it offers insolvent debtors an alternative to declaring bankruptcy and you could avoid the stigma and long term consequences of bankruptcy. Typically, an IVA is a 60 month repayment plan where you commit to making set monthly payments. At the end of the IVA any unpaid debt will be written off, providing that you have kept to the terms of the IVA.
The best debt solution for you is dependant on your personal financial circumstances. Although this page will act as a guide to offer you advice about IVA, an alternative to bankruptcy, nothing can act as a substitute for getting professional debt advice.
One of the main reasons why people opt for an IVA as an alternative to bankruptcy is to protect their home. Although an IVA may mean that you have to release part of the equity in your home.
If you are worried about your future career prospects, an IVA should not stop you from running your own business or becoming a director of a company, unlike bankruptcy. Also some careers are closed to bankrupts.
The best way to find out if you are suitable for an IVA, an alternative to bankruptcy, is to seek expert debt advice. One Advice have a team of IVA advisors who will go through your circumstances to see if an IVA is right for you.
However an alternative to bankruptcy is not always possible. If this is the case, we have a dedicated Bankruptcy Service. This service is designed to guide you through every stage of bankruptcy, from filling in the court forms to getting a bankruptcy bank account.