Financial Problems and Bankruptcy

Financial problems and bankruptcy are one of the biggest fears of any business or individual. When an individual finds themselves with severe financial problems, they may take the option of bankruptcy. Declaring bankruptcy is a very public affair, with bankruptcy notices being published in local newspapers. Additionally, employment prospects may be significantly restricted, depending on the debtor’s profession.

An alternative to bankruptcy is the Individual Voluntary Arrangement, or IVA. An IVA is a legally binding debt solution that helps a debtor avoid bankruptcy. All of a debtor’s unsecured loans are entered into the IVA and the debtor makes single monthly contributions to their licensed insolvency practitioner for a period of, usually, five years. The insolvency practitioner will then distribute these funds to the creditors on a pro-rata basis and after the end of the IVA any remaining balances are written off. An added bonus of an IVA is that creditors are not allowed to hassle you during or after the IVA chasing for payment

An IVA can help to ensure that you are free from financial problems and bankruptcy without losing your job or home in the process. In bankruptcy, a debtor is often at risk of losing their home and job. Additionally, an IVA is a private issue between a debtor and their creditors. It is not published in any newspapers, unlike a declaration of bankruptcy.

So, if you feel like you are having financial problems, you should investigate IVAs and how they can help to solve your debt problems.