An IVA or Bankruptcy – Which Option Is Right For You?
Getting out of debt can be very difficult even when you have faced up to your problem and have a plan to get out of it. This is partly because some creditors are impatient and may force you to file for bankruptcy.
There are people who look at bankruptcy charges as a good option as they will be letting the entire world know that you cannot pay your debts and people need not bother you anymore for the money you owe them. Sometimes this can borrow you time for organizing yourself and there might even be a chance where you can save your property from being auctioned. People prefer an IVA or an Individual Voluntary Agreement as they want to save their properties from being auctioned off.
The difference between an IVA and bankruptcy charge is that the former allows you to take charge of your creditor while the latter lets your creditor take charge of your life. The question is which of the two is a better evil? Given an option to choose between the two, which one would be the better one?
You are the one who can decide whether it should be bankruptcy or an IVA. To make a good decision, you should have the necessary information at hand. Some merits and drawbacks of both the options are given below for your reference.
When you opt for an IVA, you can be assured that your property will be taken care by the court. The protection that you get from this option is of the highest level as the creditors cannot get in touch with you or the trust handling your property.
Another benefit of using an IVA is that you will only be expected to repay that which you can afford. This mean that in the event that you are unable to repay the entire debt, then you will be excused and the rest of the debt written off.
There will not be any publicity issues that generally accompanies legal procedures when you opt for an IVA. Legal procedures can take a very long time and for the entire period, you will be in the limelight. This can impact your business negatively and can even hinder your chances of paying the debt.
The fact that every coin has two sides makes it important that you consider approaching a debt management company that will provide additional information on which option is best for you. Based on the pros and cons discussed, many will choose an IVA.
You can take the steps to become debt free by contacting a company such as Payplan who can help with debt problems such as dealing with a CCJ (County Court Judgement).
categories: Debt Management, IVA