Bankruptcy is a condition that nobody likes to be in but sometimes one cannot control the various conditions like fuel price hikes, inflation etc. that lead to the bankruptcy. Then one can either go for filing the bankruptcy petition or opting for the Individual Voluntary Agreement also known as IVA.
It is a debt resolving method approved by the government and you can apply for an IVA and go through whole of the process with the Insolvency Practitioner (IP). IVAs can help you in avoiding the trauma of filing for the bankruptcy. If your outstanding debt towards three or more creditors is more than £15000 then IVA can be of real help to you. If more than 75% of your creditors agree to the IVA then 75 % of your loan would be waived of and rest you will have to pay in the installments fixed agreed by you and your creditors. There will be no interest levied on the debt that is left after the agreement to the IVA. The monthly installments that you will have to pay will be according to your capacity.
Creditors are normally happy with the IVA settlement as they normally get more money through it than when you go for bankruptcy filing. It is beneficial to the applicant also as you would not have to part with your home or land property. All the installments can be paid through your monthly income. If at some point of time you feel the need for readjustment of your installments then there is a provision for that also. Along with all these benefits, there are other benefits also like there would no official notification issued for IVA like it is done in the case of bankruptcy. That will give you a peace of mind. All you need to do is find a good Insolvency Practitioner and then work out a deal that is good for both the parties.