If your debts are above a certain level, then an IVA may be a way to get out of debt. There are certain things that you need to consider first of all, and there are differences between the options that are available to consumers that find themselves in financial difficulty.
An IVA is a confidential contract between the debtor and the creditors, managed by the Insolvency Practitioner. Details of the IVA will be published on the website of the Insolvency Service; however the information will not be released anywhere else. Your friends and family need not find out, and your employer will not be contacted. Details of the IVA will not be included in any newspapers.
Bankruptcy, on the other hand, is deemed to be of public interest and the debtor is required by law to notify certain parties, such as the debtor’s bank. Details of the bankruptcy will be published in newspapers, and it may be impossible to keep the information from employers, as well as people that are known personally to the debtor.
For individuals that are in serious financial difficulty, both of the afore mentioned options should be considered, as well as other alternatives such as Debt Management Plans and debt consolidation loans. The right debt solution depends on your personal financial circumstances, and any decision that you make could have long term effects. It is important that you seek IVA advice from a licensed Insolvency Practitioner, before you decide what the best option for you is.
If you have serious money worries, and you would like to speak to a debt advice specialist, then you could contact Chiltern Debt Management, The Debt People, or Hamilton Locke. These companies are amongst the most highly regarded organisations in the UK. The advice that they provide will help you to reach the decision that is right for your own personal situation. If you would like to speak to an adviser, call FREE on the telephone number at the top of this page.