Bankruptcy Alternatives

If you are considering Bankruptcy then it is likely that you feel there is no way out of your spiraling debt problem. But UK Debts believe that Bankruptcy should only be a last resort and it is important that you research other alternatives first.

IVA as a Bankruptcy Alternatives

The Government introduced Individual Voluntary Arrangements (IVAs) as a viable alternative to Bankruptcy. No other debt solution can write off any amount of your debt.

An IVA will act as a legally binding agreement between you and your creditors. You make a set monthly repayment over an average of 60 months and any unaffordable debt is written off as part of the IVA agreement.

For more information contact UK Debts on 0808 131 9108. 

Bankruptcy vs. IVA

An IVA will allow you to avoid some of the negative aspects which are commonly associated with bankruptcy:

	Bankruptcy	IVA
Is my name kept private?	No, bankruptcy orders are advertised in your local paper	Yes, an IVA is not advertised. Although details can be found on a government website.
Will my order remain private?	No, everyone that you are financially connected with, such as your landlord, will be contacted	Yes, only creditors are notified.
Can I still run a business?	No, normally any business will be closed immediately. Certain employment  situations will also be hindered.	Yes,  you can still be a company director or practice professional roles involving finance
Will I have control over my assets?	No, any asset that can be sold to raise money for your creditors will be, such as your house. Any that are acquired during the bankruptcy term, such as inheritances are also lost.	Yes, some assets can be excluded from your proposal.
Can I keep my bank account?	No, bank accounts, credit cards will be closed and hire purchases canceled.	Yes, although some extra facilities, such as overdrafts, may be removed.
Can I avoid going to court?	No, you will always have to go to court.	Yes, as long as you are available to answer questions on the phone at the time of the creditors meeting.
Am I legally protected from my creditors?	No, your creditors may look to sell your assets and take any appropriate action against you.	Yes, court proceedings cannot be brought against you regarding any of debts bound by the IVA.

       

       

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)