How To Avoid Bankruptcy: IVA vs. Bankruptcy When it comes to debt solutions out there for individuals today, it can be difficult to decide whether bankruptcy, IVA or another solution is right for you.

In fact, it can be really confusing to look into all options because there are so many different individuals offering advice that it is hard to know where to begin and who to believe when it comes to bankruptcy, IVA and debt solutions in general.

If you are looking to avoid bankruptcy, IVA is one of the solutions that you should definitely look into. Although neither provides an immediate relief where debt problems are concerned, the IVA actually proves to be far more viable in terms of damage limitation than bankruptcy. IVA guidelines determine that, although an IVA will affect your credit score and will ultimately restrict credit agreements during the term of the agreement itself, it will not affect your chances of getting employment as bankruptcy would. Unlike bankruptcy, IVA companies do not expect you to sell any assets you have, like your home, to be able to pay creditors as much as possible back.

However, whilst anyone that cannot afford to repay his or her debts can file for bankruptcy, IVA acceptance depends on your creditors. 75% of your creditors will have to accept your proposal in order for you Individual Voluntary Arrangement to be approved. They are well within their rights to refuse an offer of far less money than they are owed. However, give the situation in which they are likely to get very little return, otherwise known as bankruptcy, IVA agreements can indeed look very appealing so make the banks and lenders your best offer. Not only would it be good for them, but it may also be good for you!