Bankruptcy or IVA

The IVA (also known as an Individual Voluntary Arrangement) was introduced by the Insolvency Act of 1986 as an alternative to bankruptcy.

In this section we'll compare IVAs to bankruptcy to help you decide which option would work best for you.

If you'd like any further information about IVAs or bankruptcy, please don't hesitate to contact our impartial advisors free of charge by calling us on freephone 0800 138 5445

IVAs Compared to Bankruptcy

No Social Stigma with an IVA

There is a social stigma associated with bankruptcy and they cannot be kept private because they are always advertised publicly. The bankruptcy announcement is usually published in your local paper along with your name, address and occupation.

However, an IVA is a private agreement with your creditors. This means that no one else needs to be told about it. As a result there is never any publicity in the local papers about IVAs.

No Professional Disqualification with an IVA

If you are made bankrupt, then you are not allowed to be involved in promoting, forming or managing a company without the permission of the court.

However, if you set up an IVA your professional or employment status will not be affected. Furthermore, you can carry on running your own business and acting as a director even if you have an IVA.

Maintain Right to Hold Public Office with an IVA

If you file for bankruptcy then there are certain public offices that you are not allowed to hold. However, your right to hold public office is not affected if you set up an IVA.

Costs of an IVA are Lower than bankruptcy

Bankruptcy proceedings are more costly for the debtor and creditor than setting up an IVA.

Keep Your Assets with an IVA

If you are made bankrupt, then all of your assets will be vested in your trustee and they might have to be sold to repay your debts. However, with an IVA, you can keep your assets.

Other Benefits of Individual Voluntary Arrangements

Up to 75% of your debt can be written off with an IVA.
With an IVA, your monthly repayments are based on what you can afford.
Your creditors cannot harass you whilst the IVA is in place.
Once you have completed your IVA according to the specified terms then you are deemed to be debt free

If you would like to apply for an IVA then please click the link below to complete a short online application form:

Click here: IVA Application Form

Or if you would like some free and impartial advice about IVAs then please contact or specialists by calling us on freephone 0800 138 5445

To contact an advisor call 0800 138 5445. Alternatively complete an online enquiry form and an advisor will call you back at the time that you specify.