Making The Decision Between IVA Or Bankruptcy
In today’s economy, many are having to ask, “IVA or Bankruptcy?”. This economic crisis seems to be worldwide. Several are just wondering what to do about it.
Individual Voluntary Agreements or IVAs are not in existence in the United States. However, in the United Kingdom, they are a heavily weighed option. The IVA is a government-run program that was implemented in the Insolvency Act of 1986. It’s creation was to assist in resolving issues, contractually, between creditors and consumers in the agreed time period. It is known for its flexibility and is given administration to an Insolvency Practitioner with several issues factored in.
In regards to bankruptcy, legal petitions can be made by the individual or the merchant once a particular dollar amount has accrued. This process begins with a court order addressing an insolvency issue of debt of a group or individual. While it is court-ordered, it is usually petitioned by the insolvent. But, in the United Kingdom, such petition only applies to individual cases, not companies or organizations of any kind.
Among experts in the United Kingdom’s financial world, it is good when individuals find credit consolidation counseling, leaving the aforementioned options as the last resort. They advise that becoming proactive at the first sign of trouble, like losing a job or being awarded fewer hours, is best. But, when getting to the point of last resort options, choosing what is best is of great importance. Considerations can be heavy with consequences as well as benefits when choosing. So, knowledge of every fact is vital in this decision.
One should know that bankruptcy is a legal status that goes on public record, exposing a personal matter to the public. This may not be an issue for some and could, therefore, still be beneficial to the individual. After one year or less, the status is removed from an individual’s record and they are able start all over.
An IVA, on the other hand, does not go on record. Its listing is only found on the Insolvency Service website and therefore, offers a more private solution. Also, unlike bankruptcy, the IVA option is never published in newspapers.
When making the choice between IVA or Bankruptcy, one should weigh all of the pros and cons of each according to their individual situation. Depending on an individual’s circumstances, either choice could be most beneficial in the long run. It would mean living debt-free.
Click the following link to read more about IVAs to help you decide whether this would be the right option for you.
