A lot of people believe that bankruptcy is an easy way of dealing with the debts they have incurred over time. Other debt solutions for those who appear to have gone beyond the point of debt return, are available and offer a less drastic, individually structured debt repayment scheme, such as an IVA. An IVA acts differently from bankruptcy, effecting your rights differently and in turn effecting your future differently.
How different is an IVA when compared to Bankruptcy?
Many find out to their dismay that the implications of bankruptcy leaves the individual with restricted rights and a severely damaged credit rating. That is not it, you may loose assets in your name, such as your house, your business, your life insurance and even unapproved pensions schemes could be sold off to cover to your debts if you were to declare yourself bankrupt.
This may all seem very serious, and that is because simply it is! It appears to be the end of your financial road and can leave you with the consequences of your debts for years to come. In comparison an IVA allows you to keep your assets, such as your car and your home, a much less distressing, respectful position to be in.
It may be appealing to opt for bankruptcy with realistic repayments lasting approximately three years when compared to an IVA and its five year repayment plan. It seems obvious but it must be pointed out that bankruptcy repayments are far more expensive then that of an IVA, and the general preparations regarding bankruptcy could very well push the assumed time scale further.
Bankruptcy: your last resort
Bankruptcy should be seen as your last option, however it is still more widely known than an IVA due in part to the media. Whether the concept of bankruptcy is portrayed to the masses in television dramas or your bankruptcy details are published in the local press it is not something you can hide.
If you are declared bankrupt it can effect your employment status and in some cases see you fired from your job. An IVA on the other hand can remain completely private, no one needs to know that your making IVA repayments except your creditors. You suffer no stigma and in turn can rebuild your life and concentrate on a future without debt, privately.
