Choosing an IVA over Bankruptcy
Without enough information on how to apply for an IVA that can rescue even the lowest credit scores there could be, owning a string of loans or credit cards to pay for may easily push you to consider filing for bankruptcy. The difficulty which many individuals experience in having to deal with multiple debt transactions at once unsurprisingly leads them to take whatever seems like the easiest way out of utter desperation.
To put it simply, taking the bankruptcy route is a means of telling your creditors that you have become entirely unable to fulfill your commitments to them. A legal proceeding will be undertaken in order that your claim may be formalized and serve to shield you from lenders who may try to pursue any action as regards the money which you owe. While every debt you have may be cancelled, you will first be required to liquidate all your possessions and have that money used to indemnify as many of the lenders you have dealt with as possible. Such incidents are retained in your financial records for up to several years and will definitely bring about adverse effects on your credit score. You may not be able to get a new credit card or be approved for a loan during that time. Problems with employment are also possible, if the company you are presently or looking forward to working with places a lot of importance on what your credit standing is like.
Doing away with unsecured debt can be achieved more easily with an Individual Voluntary Arrangement (IVA) and with none of the demeaning status that bankruptcy can leave behind. You will be required to submit payments on a monthly basis for a time frame ranging from 3 to 5 years; after which, any remaining amount of debt will be as good as gone. The amount you will be paying can be much less than what you actually owe, to be determined following a full assessment of your finances. The arrangement is also legally-binding and none of your creditors will be permitted to go after you, after all the set payments have been fulfilled.
Before making any move with regards to handling your financial situation, take some time and look into each and every possible option there is to make sure you are choosing what will suit you best in the long run. Work with an IVA specialist who can properly guide you on what expectations to have as well as on what you can do to avoid bankruptcy for good.
