What are the alternatives to Bankruptcy?
If you are insolvent as you can no longer pay your debts, Bankruptcy does not have to be your only option. You should only declare yourself bankrupt as a very last resort, and we may be able to offer you a number of other alternatives.
Bankruptcy Alternatives
There are a number of alternatives to bankruptcy which you should always consider, such as:
- Individual Voluntary Arrangement (IVA)
- Trust Deeds (Scotland only)
- Debt Management Plan
- Debt Consolidation
IVA - A way to avoid Bankruptcy
IVAs are Government introduced legislation and it is often the best alternative to bankruptcy.
It is a legally binding agreement between you and your creditors. All you have to do is to pay an affordable monthly sum over 60 months, and then all your unaffordable debt is written off.
IVAs can avoid many of the negative aspects associated with bankruptcy. It is a private procedure as your IVA will not be advertised and you can continue to run your business. You will not have to sell your home but you may be asked to release some of the equity.
Feel free to take our non obligatory debt test to see what your options are.
