Bankruptcy in comparision to an iva!
Bankruptcy is a last resort banked on when all other debt solutions have been inadequate in serving you right. In bankruptcy you loose control of your assets as these are in the possession of the trustee. The proceeds from these assets are then distributed among your creditors. In an IVA you make an offer to your creditors and decide on what is your affordable payment. Pay only what you can afford to and retain your house and car with you.
Bankruptcy insolvency
You can declare yourself insolvent with the help of bankruptcy attorney. If you are unable to make your payments on time and are battling with your debts you can either go for an iva or file bankruptcy. Before going for bankruptcy it is vital to understand the legal implications and the limitations of it.
With bankruptcy filing you face certain drawbacks:
- You are restricted financially, no more credits or loans during the period of bankruptcy
- You can’t open up a new account
- No new job or career opportunities while you are bankrupt
- Can’t think of setting up a new firm
- Filing bankruptcy is serious issue as your details will be advertised by the press
- Your credits will be deformed for years.
There is a social stigma associated with bankruptcy unlike iva. Although iva is a private affair, bankruptcy is made public with all your bankruptcy details advertised in the newspaper. Your name, address and your occupation is made public.
Going for bankruptcy will affect your professional or employment status. More over, you can’t run your own business or act as a director. Such bankruptcy proceeding is expensive. On the other hand iva helps you repay what is affordable to you and avoid any kind of embarrassment. NO creditor can harass you any longer.
Bankruptcy or iva if its difficult to make a choice between these, we can guide you. Based on your financial and personal circumstances we suggest the right debt solution to you.
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