Once was the time that the stigma attached to bankruptcy was too much to bear. Nowadays, however, many young people don’t see it the same way. Many enter bankruptcy without realising that an IVA could end their debt problem.
Debt in the UK is an issue on everybody's lips and it is something that is going to continue to be a talking point throughout 2008 as insolvency and bankruptcy levels are set to soar. What is perhaps a shocking realisation is that many young people see bankruptcy as a solution to their debt woes with a devil may care attitude about the consequences. Few young people realise that by arranging an IVA, they can enter into a legally binding agreement that will see them completely clear of debt upon successful completion. Something that bankruptcy will invariably fail to do.
IVA Or Bankruptcy – Which Is Right For You?
Many industry insiders are shocked by young people's blasé attitude regarding bankruptcy and have pointed to a lack of understanding about the consequences that bankruptcy can have on an individuals personal finances. Most would argue that opting for an IVA is the more responsible way to deal with paying off creditors. An IVA, which is a legally binding contract, may take slightly longer but once the IVA is successfully completed, the individual will be completely free from debt. In bankruptcy, however, which the young may not realise, the following restrictions are imposed:
• Bank accounts may be frozen or not allowed to open a bank account.
• Bankruptcy stays on your credit rating for a minimum of 6 years.
• Bankruptcy will preclude you from certain types of employment and you won't be permitted to be a company director.
• Any assets that you have may be taken in order to satisfy your creditors.
When opting for an IVA (individual voluntary arrangement), however, the payments are based on an affordable disposable income. An IVA will stave off the threat of repossession that could result from bankruptcy and once it has been completed successfully, the individual will be free to make a new financial start. There are increasing calls for banks to be less reckless with their lending to ensure that the needs for bankruptcy and IVA's are lessened.
Talk To Varden Nuttall About IVA
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.