IVA or Bankruptcy
If you are insolvent, you may be considering what debt solutions are available for you, and two of the most common choices are IVA or Bankruptcy
You should only ever really consider bankruptcy as a debt solution as a last resort and ensure that you explore alternate debt solutions first. The following table outlines some of the differences between IVA and Bankruptcy:
| IVA | Bankruptcy | |
|---|---|---|
| Is my name kept private? | Yes, an IVA is not advertised. Although details can be found on a government website. | No, bankruptcy orders are advertised in your local paper |
| Will my IVA remain private? | Yes, only creditors are notified. | No, everyone that you are financially connected with, such as your landlord, will be contacted |
| Can I still run a business? | Yes, you can still be a company director or practice professional roles involving finance | No, normally any business will be closed immediately. Certain employment situations will also be hindered. |
| Will I have control over my assets? | Yes, some assets can be excluded from your proposal. | No, any asset that can be sold to raise money for your creditors will be, such as your house. Any that are acquired during the bankruptcy term, such as inheritances are also lost. |
| Can I keep my bank account? | Yes, although some extra facilities, such as overdrafts, may be removed. | No, bank accounts, credit cards will be closed and hire purchases cancelled. |
| Can I avoid going to court? | Yes, as long as you are available to answer questions on the phone at the time of the creditors meeting. | No, you will always have to go to court. |
| Am I legally protected from my creditors? | Yes, court proceedings cannot be brought against you regarding any of debts bound by the IVA. | No, your creditors may look to sell your assets and take any appropriate action against you. |
