Have you been finding it very difficult to deal with multiple debts and are considering going for bankruptcy? Before choosing this option, it is advisable you gather all the information about bankruptcy. Bankruptcy has serious implications. It has long term effects. Hence seeking prior information can help one deal with the situation well.
One can find IVA and bankruptcy loan and information from scores of experts. There are many financial experts offering this advice online too. These experts will help you figure out if you really need an IVA, or should consider going bankrupt.
If you are experiencing creditor pressure or fighting bankruptcy fears, you might need IVA.
What is an IVA?
IVA stands for Individual Voluntary Agreement. An IVA is a government backed, legally approved solution to your debt problems. Introduced as a part of the Insolvency Act of 1986, IVA is an agreement with your creditors which helps reduce your monthly payments, freeze interest rates and write off your debts in time (generally less than five years).
There are numerous advantages of an IVA:
o It will help you reduce monthly payments
o Freeze interest rates
o Avoid bankruptcy and legal action
o Wipes off debts to a large extent
A good IVA should:
o Must contain an honest declaration of your assets and estimation of future earnings
o Must yield high return to creditors
Online IVA & bankruptcy help can save a person from the unnecessary hassle of running around. A person can easily get IVA help online and make a quick decision. Online bankruptcy advice can also provide an insight into the serious implications f bankruptcy.
Bankruptcy is ordered by a court and means that you are legally freed from your debts. However, the borrower will have to sell most of the possessions, including house and car, to help pay off as many debts as possible. Bankruptcy has a social stigma attached to it. You may be prevented from taking certain jobs as a result.
The greatest disadvantage of bankruptcy is that a borrower’s credit score is at stake. It may take many years to reestablish the credit score. Being declared bankrupt has long lasting consequences which can affect your life for many years. Hence, one should opt for this only if all other means have failed.
You may wonder if IVA’s make a better option?
An IVA is arranged by an Insolvency Practitioner who will negotiate with your creditors to allow you to pay off as much of your debt as possible, within a set time frame, which is normally five years. Any debt remaining after that time is then written off by the creditors.
Being relatively new, IVA’s don’t carry the social stigma of bankruptcy and do not entail handing over your possessions to the control of an official receiver if you are declared bankrupt.