Know The Difference Between An Iva And Bankruptcy!

By Author: Sadhana Dhanyal
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There are many borrowers who would have availed too many loans. Such borrowers can not avail further loans easily. They find it difficult to convince the lenders to approve the loans to them. Such borrowers cannot afford to fulfil their various needs easily. They may find it difficult to meet their day to day needs.

If you are one such borrower, you may be indeed reeling under the pressure. It may be very difficult for you to meet your various needs. If you are running on a bad credit score, and have availed too many loans, you can benefit from bad credit loans. These loans can help you avail funds despite being on a bad credit score. You could meet most of your needs.

Some borrowers consider debt consolidation loans, as they find it very difficult to repay the loans. Such borrowers can make use of this option. It can help them consolidate multiple loans into one single loan and pay for a single loan. Instead of making several payments for a single loan, borrowers can make a single payment for various loans. This helps reduce the monthly outgoings to a large extent.

Some also consider an Individual Voluntary ...
... Arrangement. It is a formal agreement between you and your creditors. Herein, you come to an arrangement with people you owe money to. You do it with the purpose to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe. Then after 5 years, your debt is classified as settled.

However, it may not be suitable for everyone. An IVA is not suitable in all circumstances. A debtor without assets or significant income would be better off by applying for bankruptcy. After the new Law on bankruptcy was passed under The Enterprise Act a first time bankruptcy now only lasts for one year with a repayment period of 12 months to 36 months.

In an IVA, the repayment period lasts normally for 60 months. So the debtor is committing to repay for a longer period than would be the case in bankruptcy. Obviously many people will opt for an IVA to avoid the social stigma of bankruptcy. However, if the IVA creditors refuse to accept the proposed IVA then the debtor should consider bankruptcy. There are various bankruptcy benefits that you stand to gain from. It is no wonder that there are many borrowers who consider this kind of option.

Sadhana Dhanyal,content developer. For more information: Debit Card Payday


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