Tip! The first step in learning how to file for bankruptcy is to make a comprehensive list of all of your creditors and outstanding debts. When you are working to determine how to file for bankruptcy, you need to appreciate that if you to proceed with a bankruptcy case, you must be sure that all of your debts are disclosed and listed in a bankruptcy petition.
IVA- An Alternative to Bankruptcy
For many people the idea of going bankrupt feels them with horror- and it’s not difficult to understand why. Going bankrupt has all sorts of social stigmas associated with it, not to mention a whole host of disadvantages and disqualifications.
No wonder then that the IVA, introduced by the government in 1986, is so attractive since it offers a good and legitimate alternative to bankruptcy.
Why Seek an Alternative to Bankruptcy
Bankruptcy has numerous disadvantages associated with it which means that an alternative should be sought if at all possible.
As well as the social stigma attached to bankruptcy, there are a number of disqualifications attached to it such as:
? People who are declared bankrupt lose their professional and business status
? Bankrupts are not allowed to hold public office
? If you are made bankrupt you have to hand over your valuable assets to the trustee (including your home)
? Future employment prospects are prejudiced by bankruptcy
? Bankrupts cannot form, manage or promote a business without the court’s permission
Why an IVA is a Good Alternative to Bankruptcy
Tip! A bankruptcy filing remains on a Credit Report for as long as 10 years, and it also stays on Court Records for as long as 20 years. Thanks to this, your chances of getting a loan and even a job again, will be minimal.
An IVA does not have any of the social stigmas, disqualifications or disadvantages associated with bankruptcy. This makes it a good alternative to bankruptcy.
IVAs were actually introduced initially as an alternative to bankruptcy.
They are popular because they offer a good alternative to bankruptcy for both debtors and creditors.
From a creditor’s point of view, an IVA is a good alternative to bankruptcy because there are no fees or legal proceeding involved with it.Moreover, an IVA offers a greater repayment of the debt than would possible if the debtor was made bankrupt.
From the debtor’s perspective, an IVA is a good alternative to bankruptcy because it lacks stigmas and disqualifications. Plus with an IVA, it is not unusual for up to 80% of a debt to be written off.
Who is an IVA Suitable For
An IVA is a suitable alternative to bankruptcy for people with debts over ?15,000, multiple creditors and who can afford to re-pay at least ?200 a month.
Clear Start, the National Consumer Debt Advice Service offers free IVA advice and help in setting up IVAs: Alternative to Bankruptcy
