Both IVAS & Bankruptcy are legally-binding contracts between creditors and yourself. Bankruptcies and IVAs are both approved by a court and will both need to be kept to by both yourself and creditors.

There are advantages and disadvantages to both IVAS & bankruptcy. Before choosing the best solution for you, you should ensure you have educated yourself correctly or you have taken advice from a solution such as ourselves.

This page gives you an idea of the difference between the two.

When is IVA Best?

An IVA may be a better solution than bankruptcy if you.

  • Own your own house or other assets that you would loose in the course of bankruptcy.
  • Own a business.
  • You have a job that you would loose by going bankrupt.
  • Have spare income each month.
  • Want to avoid the upheavals of bankruptcy.

No One Size Fits All.

An IVA is more flexible to your circumstances when compared to bankruptcy. If you have a house or a car, with an IVA you will be able to keep these away from the debt rather than having to sell them to pay creditors with bankruptcy.

Your Bank Account.

With an IVA you continue to use your bank account as normal, you do not need to tell your ban about your IVA, With bankruptcy, your account will be closed and you will struggle to open another.

Being Forced Bankrupt?

If you are being threatened with bankruptcy by a creditor or proceedings have already started getting an IVA will stop this.

Are there any Benefits of bankruptcy

Under an IVA, you may have to pay more to creditors than you would do if you became bankrupt, if you have no cash or assets then the creditors will not receive anything.

Bankruptcy comes with a huge impact on your life, an IVA is just a payment plan of realistically what you can afford and a portion of the debts written off, it impacts your life minimally.