Will An IVA Benefit You?
Bankruptcy is not the only option for people with unmanageable debts. An IVA (Individual Voluntary Arrangement) is a process that allows parts of your debt to be written off and the rest consolidated into one smaller manageable loan. The IVA has other advantages over bankruptcy, making it an attractive solution to many people who feel they are in a financial crisis.
So while creditors will have the ultimate decision about whether to approve an IVA, if your personal circumstances mean that your options come down to bankruptcy or an IVA you should be able to get the 75% majority vote you need. And the good news for you is that creditors who vote against the IVA cannot take further action.
The benefits of an IVA do not stop at simply decreasing the amount you pay back every month. People who are made bankrupt may have to sell their homes, but this isn’t the case with an IVA. Although there may be conditions attached – you might have to re-mortgage your home, or seek approval should you wish to sell it – you can still feel more secure about the status of your home.
Bankruptcy also makes it difficult to obtain further credit. For people who are self-employed this can be especially troublesome, as having to declare yourself bankrupt while seeking credit may place your business in even further trouble if it is refused to you.
Of course everyone’s personal circumstances are different, and there may be occasions when bankruptcy is preferable or unavoidable. But IVA is usually a better deal – for creditors and debtors. Because of the complex nature of setting up an IVA, seeking expert help is an absolute must, as is finding a representative you can trust to put your interests first.
You can apply for an IVA online. Find out more and start your application today.