{"id":10896,"date":"2010-11-02T11:40:42","date_gmt":"2010-11-02T11:40:42","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=10896"},"modified":"2019-08-02T12:01:16","modified_gmt":"2019-08-02T11:01:16","slug":"iva-vs-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-vs-bankruptcy\/","title":{"rendered":"IVA vs Bankruptcy"},"content":{"rendered":"\n

When debts get to the point where bankruptcy is a real option, it\u2019s vitally important that you make a decision that will be best for you in both the long and short term. Individual Voluntary Arrangements are frequently used to avoid bankruptcy, but are only useful in a certain set of circumstances.<\/p>\n\n\n\n\n\n\n\n

Get Debt Help<\/h2>\n\n\n\n

If you have debts that you can\u2019t manage to make the payments for, you\n really need to speak to a professional as soon as possible, and get the\n best of your available options sooner rather than later. An Insolvency \nPractitioner will take a thorough look through your finances before \ngiving you any advice. Their advice will be based not only on your \ncurrent outstanding debts, but also your income, outgoing and assets.<\/p>\n\n\n\n

An IP may well recommend an IVA, which is generally preferable for \npeople who have sufficient income and who wish to incur the least damage\n to their credit rating for the future. <\/p>\n\n\n\n

Choices<\/h2>\n\n\n\n

Bankruptcy basically means that you are giving up the responsibility for your debts. The costs of bankruptcy are higher, as there are statutory costs that you need to pay. The impact on your credit status is far more serious with bankruptcy than with an IVA, and should your finances improve in the future, you may be required to pay some of your outstanding debts back. This means that becoming bankrupt does not necessarily mean that you have said goodbye to the debts involved for good.<\/p>\n\n\n\n

\"Choosing<\/figure>\n\n\n\n

Future<\/h2>\n\n\n\n

If you get an IVA and it is a success, i.e. you keep to the payments \nuntil the end of the term, your debts will effectively be settled. This \nincludes situations where your IVA payments only amount to paying back a\n portion of the debts you originally owed, as if the creditors accept \nthe IVA, they must consider your debts settled at the end of it. This \nmeans that after an IVA you can genuinely put those debts behind you and\n move forward with your life.<\/p>\n\n\n\n

Income<\/h2>\n\n\n\n

One of the main deciding factors in whether to go for an IVA or \nbankruptcy will always be your income level. An IVA requires you to make\n regular monthly payments towards it over a period of a few years. If \nyou are not likely to have the required income level to do this, then an\n IVA is less likely to be an option for you, and bankruptcy may be \npreferable.<\/p>\n\n\n\n

In general, IVAs are a way to get control of your debts, whereas \nbankruptcy is an acceptance that you are not in control of them. IVAs \nhave more positive outcomes for your future finances, but only if the \nIVA is a success. An Insolvency Practitioner is best placed to help you \nwork out which option is best for you.<\/p>\n","protected":false},"excerpt":{"rendered":"

When debts get to the point where bankruptcy is a real option, it\u2019s vitally important that you make a decision that will be best for you in both the long and short term. <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[2,7],"tags":[],"class_list":["post-10896","post","type-post","status-publish","format-standard","hentry","category-bankruptcy-articles","category-iva-articles"],"_links":{"self":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/comments?post=10896"}],"version-history":[{"count":1,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10896\/revisions"}],"predecessor-version":[{"id":10910,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/10896\/revisions\/10910"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=10896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=10896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=10896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}