In today’s economic climate, several individuals wonder if IVA or Bankruptcy would be good for them. As a matter of fact, there is a worldwide financial issue. Many people are wondering what to do.
Individual Voluntary Agreements or IVAs are not in existence in the United States. However, in the United Kingdom, they are a heavily weighed option. The IVA is a government-run program that was implemented in the Insolvency Act of 1986. It’s creation was to assist in resolving issues, contractually, between creditors and consumers in the agreed time period. It is known for its flexibility and is given administration to an Insolvency Practitioner with several issues factored in.
When it comes to bankruptcy, orders can be issued by an individual or a creditor after a certain amount of debt has accrued. It is a court-ordered petition of insolvency concerning the debt of a person or an organization. It is usually court-ordered, but initiated by the insolvent. However, in the United Kingdom, this is a petition that references individual situations as opposed to companies or organizations.
Many of the UK’s financial advisers would counsel an individual to seek out credit consolidation counseling with either choice as the last resort. Experts say that it is best to try to resolve financial issues when the first sign of trouble comes, like the loss of employment or a cut in wages. Making this decision is based on what would be most beneficial to the person. Factors to be considered can weigh heavy with consequences once a decision is made. So, knowing all of the facts is crucial in this process.
By definition, bankruptcy is deemed as a legal status that is published publicly. This is a factor that may not be an issue for one and could still be an advantageous decision. The advantage is that after a year or even within a matter of months, this legal status is expunged from one’s record with the capability to start over again.
An IVA, on the other hand, does not go on record. Its listing is only found on the Insolvency Service website and therefore, offers a more private solution. Also, unlike bankruptcy, the IVA option is never published in newspapers.
Choosing between IVA or Bankruptcy is a hard one to make and every factor should be considered in all individual cases. Depending upon every case or circumstance, choosing either of these can be most promising in the long term future. It ultimately means living a debt-free life.
Click the following link to read more about IVAs to help you decide whether this would be the right option for you.