{"id":2214,"date":"2014-01-03T09:00:34","date_gmt":"2014-01-03T09:00:34","guid":{"rendered":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/?p=2214"},"modified":"2020-10-20T15:22:32","modified_gmt":"2020-10-20T14:22:32","slug":"iva-or-bankruptcy-pt1","status":"publish","type":"post","link":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/iva-or-bankruptcy-pt1\/","title":{"rendered":"IVA or Bankruptcy – Part 1"},"content":{"rendered":"\n

This is the first in a series of articles which will look at the effects on the career of a professional who becomes insolvent. It will compare the effects of two of the principal remedies available to such a professional i.e. Bankruptcy<\/a> and Individual Voluntary Arrangement<\/a>.  <\/p>\n\n\n\n\n\n\n\n

Financial problems beset people in all walks of life. Just because somebody has a desirable or esteemed profession does not bestow immunity from getting heavily into debt. Professional people are often the envy of society because of their perceived high income. High income can lead to high lifestyle and a sudden change in earning capacity or in other family circumstances can cause even a pillar of society to falter in meeting financial obligations.<\/p>\n\n\n\n

\"Paying<\/figure><\/div>\n\n\n\n

The consequences of insolvency can be devastating for a professional,\n particularly if an inferior financial solution is chosen. The big \nquestion for an insolvent professional is whether to enter into an \nIndividual Voluntary Arrangement (IVA<\/strong>) or to petition for Bankruptcy<\/strong>\n if all other possible remedies have been exhausted. Such other remedies\n might include obtaining financial assistance from a relative with means\n or a enjoying a windfall such as a substantial inheritance or winning \nthe lottery. In the absence of such good fortune, a professional should \nconsult with an Insolvency Practitioner<\/strong> (IP) without delay so that the alternatives of IVA or Bankruptcy can be considered.<\/p>\n\n\n\n

Many of the professions have their own Recognised Professional Body<\/strong>\n (RPB) without whose authorization, the professional may not practice. \nAuthorization may consist of holding a current licence or other \nnecessary accreditation. If the RPB expels the professional or refuses \nto issue a licence to practice or such accreditation as is necessary, \nthe professional may suffer a serious reduction in income if unable to \npractice.<\/p>\n\n\n\n

Professionals who opt for Bankruptcy generally face more serious \nsanctions from their RPB than they would face if they chose to offer an \nIVA to their creditors. If you are a professional and insolvent, your IP\n should be able to tell you what sanctions apply to you both \nin Bankruptcy and in an IVA. Some sanctions may be mandatory and some \nmay be at the discretion of your RPB. There is a surprisingly wide \nvariation in the sanctions, depending on the RPB of which you are a \nmember. Your RPB will generally consider all the circumstances of your \ninsolvency, particularly if the application of sanctions is \ndiscretionary.<\/p>\n\n\n\n

If you are expelled from your RPB, re-admission may be possible and \nyour RPB may also grant a right to appeal. Your RPB may also have a \nbenevolent fund available to assist its insolvent members by providing \nadvice or financial assistance or both. Again, your IP should be able to\n advise you on these matters and of course you should always consider \nobtaining legal advice, particularly when the practice of your \nprofession and therefore your livelihood may be threatened.<\/p>\n\n\n\n

In the next article in this series, we will look at some specific \nprofessions and compare the effects of Bankruptcy with those of an IVA.<\/p>\n","protected":false},"excerpt":{"rendered":"

This is the first in a series of articles which will look at the effects on the career of a professional who becomes insolvent.<\/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-2214","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\/2214","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=2214"}],"version-history":[{"count":5,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/2214\/revisions"}],"predecessor-version":[{"id":13550,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/posts\/2214\/revisions\/13550"}],"wp:attachment":[{"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/media?parent=2214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/categories?post=2214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-json\/wp\/v2\/tags?post=2214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}