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IVAs Versus Bankruptcy

Individual Voluntary Arrangements (IVAs) were introduced by the Insolvency Act of 1986 as an alternative to bankruptcy.

In this section we’ll examine what advantages Individual Voluntary Arrangements offer over bankruptcy.

If you’d like any further information about Individual Voluntary Arrangements, please don’t hesitate to contact our Individual Voluntary Arrangements advisors free of charge by:

a) Calling us on freephone 0800 138 5445

or

b) Filling in this short form and an Individual Voluntary Arrangement advisor will call you back at a time that is convenient to you

Advantages of Individual Voluntary Arrangements over Bankruptcy

Social Stigma

Unlike Individual Voluntary Arrangements, there is a real social stigma associated with bankruptcy and they cannot be kept private because they are always advertised publicly. The bankruptcy announcement is usually published in your local paper along with your name, address and occupation.

However, an Individual Voluntary Arrangement is a private agreement with your creditors.

This means that no-one outside it needs to be told about the Individual Voluntary Arrangement and so there won’t be any publicity in your local papers.

 

Professional Disqualification

If you are made bankrupt, then you are not allowed to be involved in promoting, forming or managing a company without the permission of the court.

However, if you set up an Individual Voluntary Arrangement, your professional or employment status will not be affected.

Moreover, you can continue to run your own business and act as a director.

Public Office

If you file for bankruptcy then you are not allowed to hold certain public offices. However, your right to hold public office is not affected by your having set up an Individual Voluntary Arrangement.

Costs

Bankruptcy proceedings are more costly for the debtor and creditor than Individual Voluntary Arrangements.

Assets

If you are made bankrupt, then all of your assets will be vested in your trustee and might have to be sold to repay your debts. However, with an Individual Voluntary Arrangement, you can keep your assets.

 

Other Benefits of Individual Voluntary Arrangements

 

  • Up to 75% of your debt can be written off with an Individual Voluntary Arrangement.

 

  • With an Individual Voluntary Arrangement, you make monthly repayments according to what you can afford.

 

  • Your creditors cannot harass you whilst the Individual Voluntary Arrangement is in place.

 

  • Once you have completed your Individual Voluntary Arrangement, you are deemed to be debt free.

 

Individual Voluntary Arrangements represent an excellent way to clear your debts and to make a fresh start.

 

If you would like to apply for an Individual Voluntary Arrangement then please click the link below to complete a short online application form:

 

Click here: Individual Voluntary Arrangement Application Form