Bankruptcy may not be the only option
Published: 08/06/2020 By Jane PriceIf you are an individual and think you are insolvent and are unable to pay your debts as they fall due, you should seek professional advice from a licensed insolvency practitioner.
If you also think bankruptcy is your only option – think again as this may not be the case.
An Individual Voluntary Arrangement, also known as an IVA, offers individuals the opportunity to take back control of their lives and be debt free. An IVA is a process that is normally entered into to avoid bankruptcy. IVA's have generally been considered as a preferred alternative to Bankruptcy, often because of the stigma associated with Bankruptcy itself.
Stigma of Bankruptcy
Stigma regarding bankruptcy is now considered to be a declining issue - in general the younger the debtor the less the perception of any stigma. However, if you are still concerned the following may address your concerns.
There is no need to tell anyone about an IVA as it is a private arrangement between you and your creditors. All parties involved in the IVA, the Insolvency Practitioner and the creditors, are bound by the Data Protection act, and will therefore not be able to disclose any information relating to the IVA. However, it’s important to think about who can gain access to IVA information.
Bankruptcies are reported in the London Gazette and the local paper. IVAs are accessible to the public on the insolvency register and it’s reported on your individual credit record so it is always possible that someone searching for the information will find it.
But for individuals who prefer not to disclose this information may find that an IVA is far less likely to become public knowledge than bankruptcy.
While employers are not directly notified, it is important anyone facing bankruptcy check their employment contract, especially if regular credit checks are carried out within the business. Indeed, some employers will not employ anyone who has been made bankrupt, so it can affect future job prospects.
An IVA may not have the same implications as bankruptcy.
So, if you were thinking about bankruptcy STOP! Take professional advice. Bankruptcy may not be your only option.
One easy step to a new future is to talk to turpin barker armstrong about Individual Voluntary Arrangements.
Visit our IVA page here for more information