Make Your Own Choice; IVA or Bankruptcy

By: Edward Woodwards

The financial crisis in the entire world is increasing day by day. This eventually leads to the difficulty in managing household expenditures, due to which it becomes necessary to take loans, leaving you with the mess of debt. You fulfil the needs of your family and kids by putting yourself in financial turmoil.
If you are unable to pay off your debts, you will simply go for bankruptcy as your best available option. You can have a far better option as well if you really want to save your money. You can go for IVA that is also known as personal bankruptcy. It is called personal bankruptcy because it allows you to declare bankruptcy; however, it is not applicable in all situations. Those who want to keep away from bankruptcy must go for the option of IVA. It is a type of agreement which takes place between the debtor and the creditor. Moreover, it also takes in to account the financial issues and other problem of the debtor. Thus, relaxation is given to the debtor.
The selection between these two available choices needs a lot of consideration and thought. You must know about the nuts and bolts of these two. In case of bankruptcy, it is mandatory to sell the expensive assets such as home, car etc. On the other hand, you can avoid selling anything in case of IVA.
Bankruptcy ends in leading your credit status to nil. Moreover, you may also need to have some loans as well to start your new life, which will again trap you in mess. So, it is vivacious cycle which never ends. On the other hand, you will not have to take loans on the completion of IVA and thus, you can simply have a new start on your own.
In personal bankruptcy, one does not have any control over the situation once the bankruptcy is initiated. Through this process, the outcome is completely dependent on the information gathered by the Official Receiver, and the decision is in the hands of the presiding magistrate on the day of the hearing. In case of IVA, a person working on your behalf handles the negotiations. Terms are completely dependent on the individual and his creditor.
Bankruptcy is a stigma that stays attached to an individual, as it is advertised in the papers. Therefore, several people will find out about the individual going bankrupt. On the other hand, nobody knows about IVA, as it is a personal agreement between an individual and the creditor. Career is greatly affected by personal bankruptcy, because many employers do not hire people who have been through personal bankruptcy. It also affects other career options, as it does not allow an individual to open his own business or become a director. However, since IVA is a personal agreement, it does not affect the career of a person.
Which is the better option? It depends upon the situation in which an individual finds himself. For example, a person with small income, and large amount of debts should declare bankruptcy rather than opting for an IVA. Contrarily, an individual with a constant income should avoid bankruptcy, and apply for an IVA.
It is wise to consult an expert who can most probably tell you which option you should go for.

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Edward Woodwards is a financial consultant. You can take iva assistance and solutions to your debt problems. Find out more information at his recommended website

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