You might thank that bankruptcy is the answer to all your debt problems, but in fact it could make things worse. You should only consider bankruptcy when every other debt management solution has failed. That's because it's a serious legal process, and it places a number of restrictions on you as well as resulting in your losing control of all your assets. There are a number of jobs or community positions that you can't hold if you're currently bankrupt – or for a period after your bankruptcy has cleared. You won't be able to apply for new loans or mortgages, and, as bankruptcy is public, everyone will know that you've got serious financial problems.

A real debt management alternative

No matter how serious your debt issues are, if you act now, you can still avoid having to file for bankruptcy yourself, or having bankruptcy action brought against you by your creditors. It's a solution that lets you keep control of your money and gives you time to sort out your debts and re-arrange your finances. It's a solution that gives you debt management without taking out any other loans, and without making yourself publically bankrupt. It's an Individual Voluntary Arrangement, or IVA; a formal agreement between you and your creditors that lets you clear your debts over a set time period and at an amount agreed with your creditors.

The advantages of IVA as a debt management solution

An IVA gives you several advantages over other forms of debt management:

• Control – rather than handing control of your finances over to a court-appointed administrator, you keep hold of your income and your assets, including your property. You can budget carefully so that you can meet the single payment you need to make each month and concentrate on getting your finances back in order.

• No interest – unlike a debt consolidation loan, there's no more interest to pay once your IVA has been set up. You don't need to worry about interest rates, or mounting debts.

• Set term – an IVA usually runs for five years. This means you know exactly how much you're paying and when – and you can plan for when the IVA comes to an end and you can start with a debt-free clean sheet.

• Credit record – although an IVA will be recorded on your credit record and will remain on your record for several years after it has completed, it is still a more positive entry than bankruptcy.

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.