Bankruptcy Alternatives
Bankruptcy should only ever be considered as a last resort, as there are other alternatives which are worth exploring first. Not sure which debt solution is right for you? Take the quick IVAs Test to see your potential options.
If you have any questions or would like to know more about bankruptcy alternatives, contact IVAs today on 0808 131 9103 or fill in the Query Form.
Alternatives to Bankruptcy
- IVAs
IVAs were introduced as part of the Insolvency Act of 1986 as a more practical alternative to bankruptcy for those with debts over £15,000. The debtor makes reduced monthly payments for an average of 60 months and then any remaining debt is automatically written off as part of the agreement. - Trust Deeds
Like an IVA, a Trust Deed is a legally binding contract where you make one lower monthly payment to your debt and then any remaining debt is written off at the end of the agreement. - Debt Management Plans
A debt management plan is an informal repayment scheme. We will negotiate with your creditors who are sometimes willing to freeze interest on your debts. You make one low payments that you can afford.
In terms of solving debts, bankruptcy is an extreme solution, and is only suitable for debtors when all other options are exhausted. Always take expert advice from an Insolvency Practitioner.
Entering into an IVA may adversely affect your
credit rating for up to six years from the date of approval.
Your property will be protected within an
IVA but you may be required to release all or part of any equity during the
period of the arrangement.
Failure to complete the term of an IVA can
result in bankruptcy.
(In Scotland, a PTD is the equivalent to an IVA.)