A great alternative to bankruptcy is taking out an IVA. Although this is an option which is not available to everyone, it could provide you with the perfect way of getting out of debt. This is a legally binding agreement which is made between your creditors and you. Although you are tied to the contract which is created you do not have to worry about the implications which can complicate things when applying for bankruptcy such as:
- Losing your job if it is affected by bankruptcy such as the armed forces, insurance sales, accountancy and the armed forces.
- Losing all of your assets including your home. If you own assets of this type it is possible that your Official Receiver overseeing the bankruptcy will order them all to be sold, with an IVA this can be avoided.
When Is an IVA a Possible Option?
When you decide to look into an IVA you will first need to establish if you are insolvent. This means that you owe more than you earn each month or that your assets do not amount to more than your outstanding debts. However if you do have some disposable income available each month you might be offered the choice of an individual voluntary arrangement in order to avoid the drastic step of applying for bankruptcy.
Your advisor will be able to talk to all of your creditors and try to come up with an arrangement which is accepted by everyone. Once the arrangement has been created it will need to be accepted else you will need to look at another option. If it does go through without any problems you are then legally bound into paying the agreed amount.
No More Hassle
By entering an IVA you do not need to worry about the state of your unsecured debts causing you any more stress providing you stick to plan. Your creditors do not have the right to send you any more threatening letters make demanding phone calls or send collectors to your door. So if these are problems you are currently facing it is worth discussing the option with a debt advisor and finding out if it could work for you.
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An IVA could be a more suitable option to help solve your money problems, speak to an expert to find out more.