IVA vs bankruptcy

It's important for a debtor to consider all of the implications before deciding whether or not bankruptcy make sense. Because the Individual Voluntary Arrangement (IVA) was introduced by the government specifically as an option to bankruptcy, it is often the best alternative, assuming that you meet some conditions and that it proves possible to agree things with your creditors. We at ‘Chance for Loans’, are supporting our clients in choosing better option to handle their debts and late payments. For a debtor it is quite important to know the difference between IVA and bankruptcy. 

‘IVA’ is also known as Individual Voluntary Arrangements which is a formal arrangement through the court, set up by a Licensed Insolvency Practitioner and is intended to be an alternative to bankruptcy. It is a legal and government approved method of resolving debts that shun the cost of bankruptcy. In IVA, you as a debtor have to pay a monthly installment. This monthly installment is prepared after calculating your debt burden, salary and expenditure. In this plan repayment term is normally for five years. After this time period debtor is declared debt free even if he has not repaid the whole debt amount.

On the other hand Bankruptcy is for those people who are facing sharp financial difficulty and are unable to repay the loan funds. Here, the asset of the borrower is distributed among the lenders. But, in case of IVA no such distribution takes place. Bankruptcy cases are revealed in the local newspapers. This publicity might create social mortification too. On the contrary, IVA is highly confidential in comparison to bankruptcy. Candidates filing for bankruptcy are disqualified from fresh loans for certain years. But, while under IVA term, you can lift fresh credits too.

For a debtor, it is quite hard to select an ideal option for his financial condition. To solve this problem, Chance for Loans is available to help you. You can contact us through online application form. Considering your application form, our experts will contact you without any further delay. We try to bring best possible deal to suit your budget and you can look forward to a debt free life.