subject: Iva Vs. Bankruptcy [print this page] Basically these two options are not so different either, it is only in their ways of dealing with debts that is different, and IVA which is also referred to as the individual voluntary arrangement is an individual method and depends on several factors like the individuals income, age, capital and a blend of various other factors. On the other hand bankruptcy is a legal procedure which occurs when a debtor is unable to repay his debts wherein the assets and properties are handed over to a bankruptcy trustee which is then utilized to pay the creditors. Therefore if IVA offers you with an option to wipe off your debts, bankruptcy comes as a public document that you are unable to pay your debts. For an entire nation which is trying to battle with the burden of debts and the other complications that are accompanying it, the big question is certainly, which is a better option IVA or bankruptcy and perhaps the best answer may come from a professional debt advisor. Those who have already undergone the experience of filing a bankruptcy are aware of its bitter implications as it severely affects the credit chart where it remains for no less than 10 years and this is not the end, consumers end up losing their assets such as the house or a business as the entire lot can be sold off to cover for the debts in case if the consumer may declare himself as bankrupt. All this appears to be quite distressing and it seems as if you have appeared at the end of the road as far as your finances are concerned. But IVA is a less drastic procedure of debt repayment which allows you to keep all your assets such as your home and your car. Though a bankruptcy option may seem as more tempting as compared to an IVA, considering the duration of the repayment, but no one should forget that bankruptcy is a far more expensive procedure than IVA, therefore bankruptcy should ideally remain as the last resort option for every debtor for unlike bankruptcy where your credit report is so badly affected that you may be ousted from your job which in other words is to push yourself down from a respectful position, unlike an IVA which is a fully private affair where your debt repayments are known to the creditors only. Thus among the many differences that exist between a bankruptcy filing and IVA the main ones are:
There is a separate treatment for the assets and home in each of the cases.
The time period is different for each.
The employment factors have to be considered before deciding the suitability of each of the options.
There are numerous implications that have to be taken into account before deciding on a bankruptcy or IVA option and perhaps that is the exact reason why a consumer decides to go with debt management
plans or debt consolidation loans to deal with their debt situation, but for severe debt cases a professional advice will do much good to the debtor before choosing on an option.
