Have you been thinking of claiming bankruptcy? What if there was another option other than bankruptcy to solve one’s financial dilemma that is just as beneficial as bankruptcy but not as limiting? You’re in luck!!! There is a substitute. It’s called an Individual Voluntary Arrangement. Also known as an IVA, it is an agreement between the debtor and their creditors to repay a percentage of one’s debt over a course of the length of the IVA. The length usually is about five years. After the length of the IVA, all outstanding debts are usually written off.

Only a couple people can initiate an IVA. In most cases, the debtor begins the process of starting an IVA. But if the debtor is an undischarged bankrupt, the trustee, official receiver or the bankruptcy courts can kick off an IVA as well. The idea is to protect assets that maybe at risk if one were to file bankruptcy, such as your home and automobile. IVA’s don’t leave as much of a lasting impact as bankruptcy would, and it also gives one a chance to obtain credit after the length of the IVA itself. Although IVA can be just as stressful as filing bankruptcy, in the long run, it looks better than having a bankrupt on one’s credit.

It should be known before starting an IVA that it’s not just paying back a portion of your debts and walking away from the rest. Restrictions do apply and starting off the process usually ranges from anywhere upwards to about twenty five hundred dollars. Most IVA operators require about seven hundred and fifty dollars upfront while working in the rest into the IVA itself. If you are in debt, and are thinking of bankruptcy, consider an IVA. It could be the answer to preserving your assets and your future.