Bankruptcy V/s Iva - Find Out Which Is Good For Yourself!

By Author: Sadhana Dhanyal
Total Articles: 2542
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Today, recession is affecting almost every sector of life. People are living on the financial knife edge today. According to an independent research commissioned by Callcredit Information Group, some 26 per cent of mortgage holders claim that a drop of up to £300 in monthly income would result in being unable to meet their mortgage repayments.

People are slowly trying to overcome the ill effects of recession by adopting various means. If you have been submerged with debt problems, then you can easily seek a way out in the form of debt management plan. This kind of plan can help you immensely overcome the ill effects of multiple loans. This can help you realise the problem well and get over the problem quickly.

There are many people who have benefited from this kind of service. They have easily overcome the problem with some debt management techniques. One of these techniques includes debt consolidation. This can help immensely a person submerged with multiple loans.

This is known to work out really well. Under this, what happens is that a person consolidates multiple loans into one single loan. This ...
... greatly helps reduce the burden of paying more rate of interest to various loans. It brings down the rate of interest paid to various creditors. Hence, instead of paying multiple creditors, one can pay a single loan to consolidate various loans.

However, if this does not work out well for you, you can consider opting for an IVA or in the worst scenario bankruptcy. Let us examine what an IVA holds. Basically, an Individual Voluntary Arrangement (IVA) is a personal legal binding agreement between a debtor and the creditors. In contrast to this, bankruptcy is publicly advertised in a local newspaper and the London Gazette. As the former is a personal agreement, it does not carry the stigma associated with bankruptcy.

Moreover, unlike bankruptcy, an IVA does not compulsorily restrict to avail you any future credit. This is not the case with bankruptcy. It confines an individual from having access to credit for a specified period of time. The credit history of the debtor is tarnished forever under this.

Hence, you must consider the pros and cons carefully before you consider an IVA or bankruptcy. The effects are life changing with bankruptcy. Individual Voluntary Arrangement is less painful. Herein, the borrower can get credit without any restrictions even after signing it. Hence, it is more advantageous.

Sadhana Dhanyal,content developer. For more information: IVA Debt


Get more information on: IVA Information