IVA Vs Bankruptcy - The Facts You Need to Know
There are so many people which are having so many questions on their minds but which are seriously under the debt problems they have question about the difference between individual voluntary arrangement and bankruptcy. This is the difficult thing to understand for a normal man but who are under the debt problem they find easiest way to get out from them. There is another difficult situation for the persons who are under the debt because they get confused in choosing the right option but they should have to take the right decision after watching their circumstances that whether individual voluntary arrangement is better or bankruptcy.
The bankruptcy means when you can’t payback your debt and court declared in the law that this person is not able to payback their debts and he may go to the jail or after the order of court when you can’t payback your debt then an officer is given to you who will investigate all this case and he asked you to sold your property or assets if you have and pay back your all debts. All the money of your sold asset will be used as a payback payments to your creditors and the other charges or the court fees too but if officer thinks you can afford to payback your debt from your income then he take this permission from the court and you have to do but this process will be for three years the payback payments will automatically be cut off from your income or if you get off from this track then you can be arrested.
The assets which can be sold is your property, your shares, your car or other assets. In this case all the assets will be changed in the ownership of your receivers and you cannot buy this to any other person. But the real receiver can sale it.
In bankruptcy not all the debts problems will sort odeut. Like loans, other company debts or any other charges interest will not be clear. The only thing which is left in bankruptcy is your pension and only a motor bike is given too you in the bankruptcy from that you can earn money or do job.
Individual voluntary arrangement (IVA)
The individual voluntary arrangements is the process which save you, to be called as a bankrupt so this process is between you and your lender. In this you arrange your repayment plan it is usually of five to six years in this you pay back all your debts back to your creditor but the best thing is you pay back according to how much you can afford like these pay back are from your income. In this your assets will save and the creditor stop calling you again and again. But the best part is played by your insolvency practitioner if he agreed your creditor then you will become tension free and creditor didn’t gives you any warning again.
In IVA your property or you home will be saved you can live in your home and it will not be sold. But the things you can sale in IVA is your car and not as important thing which are useless for you and even you can buy them again. As in bankruptcy the pension is protected in IVA also. But if you have any other savings like from your shares or stocks so you have to tell your IP.
In IVA you can continue your job and you can earn the money from the source as you are already earning. There will be no press releases news about you as in bankruptcy
In IVA your all debts will clear like card loan, personal loan etc. but not the fine and other charges. After the IVA you will be debt free and you can continue your life again. It is not a simple or easy way but it is more than bankruptcy