If you have been on the internet now many Debt help companies are advertising Individual Voluntary arrangements in order to avoid bankruptcy. At first these schemes may seem as an Angel of Light in reality it can mean a penniless existence for five or six years, but very profitable for the companies selling these schemes, including ourselves.
Imagine a business man with a small factory and some machines who falls on hard times and is moments away from insolvency, pushed into bankruptcy by his creditors.
His business is closed down his machinery sold off for nothing. He loses his livelihood and his creditors get nothing. No-one wins in this situation but an IVA comes into its own here. Imagine if he meets with his creditors with a proposal that he is allowed to keep his business avoid bankruptcy and use his business to pay his creditors all he can for a set period of time which will allow him to pay at least a good chunk of his debt back. An Insolvency Practioner will have to supervise the arrangement who also needs to be paid who acts on behalf of the creditors. If he keeps this arrangement going for at least five years he is released from the balance that he owes which will allow him to again lead a normal debt free existence. This is a Win Win situation for the debtor and his creditors, and is the prime reason an IVA came into existence.
However in reality the IVAs are now being sold to individuals who really should never been considered for such expensive schemes. Individuals who don't own businesses that can fund these schemes sometimes individuals who don't own property at all, before you enter one of these schemes you need to ask yourself, we live in uncertain times, Is my job safe for the next five years? Will I stay healthy? What if the car needs repairs? What if the washing machine breaks down? Because all of your excess income on a tight income and expenditure budget will be handed over to your creditors.
Let’s face it whether it's IVA or Bankruptcy you are looking into the Abyss, a rosier picture can be painted on either scenario however for truly independent views on IVAs click on the following link to see the BBC, Citizens Advice Bureau and the Observer Newspapers out IVAs and then make up your own mind.
Click Here to see The Gardians Report or
Click Here to see the BBCs Report
or if your already on a failing or failed IVA Click Here
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or for mobiles 01782 825245