Bankruptcy vs IVA
Which is the best option for you: Bankruptcy or an IVA?
If you are long term unemployed, retired or on long term incapacity benefit, bankruptcy may be the most suitable course of action.
There are some distinct advantages to bankruptcy. Following changes to government legislation as a result of the Enterprise Act 2002 which came into force in April 2004, you are eligible for discharge from bankruptcy after just 12 months instead of 3 years. Once “discharged” from bankruptcy, you will be free from debt and creditors can’t take any further action against you, although you may still have to make payments from your income for a period of 3 years if an Income Payments Order is granted.
There are a number of forms to complete to file for your own bankruptcy, and you will be required to pay a court filing fee. Although the bankruptcy process is long winded, it will provide you with a fresh start.
If, however, you are in regular employment and want to avoid bankruptcy, you may wish to consider whether an IVA would be appropriate. You should seek the advice of an Insolvency Practitioner.
Individual Voluntary Arrangement Information | Bankruptcy Issues
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