IVA Bankruptcy

Introduction to IVA Bankruptcy

The number of people in the UK who are having financial difficulties is getting greater and greater each and every day. The reasons for this are numerous, but it all comes down to a simple fact. The fact is that more and more people are experiencing the harsh economical situation on their own skin. Many people believed that they would not be the ones that would be affected by many changes in today’s economy, but the fact is that the majority of people are. The modern way of life, which is far more expensive than it used to be, has finally taken its toll.

Many people found themselves in a difficult financial situation literally over night, by losing their jobs, for instance. Besides this, the modern lifestyle has affected some people in a very bad and unexpected way. Namely, credit cards, personal and business loans and many other things have proven to be only a temporary solution to many, leaving them almost penniless. This is why one of the most important questions for many people all over the UK is how to solve their financial problems and go on living a normal life.

IVA Bankruptcy – Are There Any Differences between the Two?

Although many people are not aware of this and think that an IVA and bankruptcy are basically the same, there are some very important differences between the two, as well as some similarities. Both of these are used by people who simply cannot do anything more than they have already done in order to get out of debt. When it comes to being in debt, there are many things that can help people, but the IVA and bankruptcy are the two final steps to take for people who are faced with financial situations that cannot be solved.

Generally speaking, an IVA, or an individual voluntary arrangement, is an alternative to bankruptcy. Many financial experts believe that an IVA is always a better solution than bankruptcy, and in most cases it really is. Basically, both IVAs and bankruptcy have the same goal – to give people a second chance. However, they both have very different ways of achieving this goal.

IVA Bankruptcy – Which one is better?

When it comes to choosing a way to try to end their money problems, people are advised to find out all the options that are presented to them. For those who have fallen so deep in debt and feel like there is absolutely no way out, an IVA and bankruptcy are the only good options. As it has already been mentioned, both of these have their respective advantages and disadvantages, and here are some of them.

The IVA gives people the chance to keep their property or properties, while filing for bankruptcy means losing almost all of the property owned, besides household possessions and one vehicle. Also, an IVA can be a personal matter, while every bankruptcy is a public matter and has to be published in the newspaper. An IVA usually lasts for five years, while bankruptcy ends after a year in most cases.

All in all, it is up to people to make a decision on which option to choose, whilst getting as much information as possible on both of the options.