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Can I Do IVA after Bankruptcy: Solution for Your Bankruptcy

A person gets bankruptcy when he or she does not have the financial resources to pay off his debts. Here all the debts are written off but it is not as easy as it appears. It is a complicated process and it has its consequences. What can save you here is an IVA. An IVA is an Individual Voluntary Arrangement which is under the Insolvency Act 1986. This is an alternative to bankruptcy where the consequences are not as bad as that of a bankruptcy. But it does come with its own issues.

Features
If you declare yourself bankrupt you will loose control of all your assets and you won’t be able to get a loan of over £250. It is an IVA which saves you from this ordeal. An IVA is not made public so it saves you from the disgrace and embarrassment also. Here it is a private agreement between the person in debt and to whom he owes. Once in an IVA one can keep his job as the head of the company but you will lose financial control. You also must follow a strict budget and you can’t get any credit either. Best thing to do before entering an IVA is that you consult a debt councilor.

Advantages
The IVA will enable you to chalk out a systematic repayment plan according to the borrower’s capacity. Since it is a legal contract both none of the party can deny at a later stage. The borrowers can also get the help of a legal practitioner. The borrower’s property will be on the safer side. Various fees that are charged in a bankruptcy are not charged here. It all makes the whole process cost effective.

Summary
An IVA is the best thing that one can do after a bankruptcy. It will save you many an ordeal that you face in bankruptcy. It has its share of advantages and one can save himself from a lot by opting for it