Bankruptcy or IVA - What's your pick?

stock photo Bankruptcy is not the sole way to deal with your mounting debts. There are a number of financial alternatives at the verge of mounting debt and inability to repay them. Individual Voluntary Agreement is one of the cost benefit alternatives. According to the survey of a leading financial website, In the last three months of 2007, there were 29,804 individual insolvencies in the UK. Of these, while 12,741 choose bankruptcy, more than 17,000 people decided to go through an Individual Voluntary Agreement. The number justifies the importance of the agreement and its cost- benefit. In case of Individual Voluntary Agreement a payment plan agreed between you and your creditor. The formal and legal binding agreement means that the individual agrees to pay off part or all of the total debt burden. But it can ultimately write off up to 75% of the total debt without the stigma of going for total financial collapse .A major benefit of undergoing such agreement is that it is managed through an authorised practitioner. So you can avoid situations like selling your house to repay the loan burden or declaring yourself (or being declared) bankrupt. In case of bankruptcy, the recovery procedure involves a court using the individual’s assets to repay creditors. But the IVA services often allows you to keep more control of your movable and immovable assets. read more