Bankruptcy has a certain ring to it, a bad one. People tend to shy away from you, almost like it’s the plague.
That’s why there is an alternative to bankruptcy - IVA - Individual Voluntary Arrangements.
So what are they? And what kind of advantage do they give over a bankruptcy? Here are the major points:
- 75% of debt written off
- Be debt-free in 5 years
- One, manageable monthly repayment
- Government backed solution to debt
- End the hassle of creditors calling
The usual story is to blame - easy credit cards and people not paying them off. The credit crunch caught up with them and they find themselves unable to pay. That’s why IVA’s are a good solution instead of bankruptcy. It has to be accepted by your creditors, 3 out of 4 of them, and you have to pay them off over 5 years.
