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Bankruptcy Alternatives

Many people who contact ClearStart are thinking about bankruptcy, or are worried about being made bankrupt against their wishes. It is important to make sure you understand what the implications of bankruptcy are and what other options are available. These options include the Individual Voluntary Arrangement (IVA), which was introduced by the government in 1986 to help people who would otherwise face bankruptcy. You might want to take a look at a table comparing bankruptcy with IVAs.

It is well worth remembering that the people you owe money to will often want to see an outcome other than bankruptcy. That is especially true if you can propose a way forward that returns more of the outstanding debt to them.

Bankruptcy does have some advantages – your debt problems are resolved and you will be in the process itself for a maximum of three years. However, most people would agree that other options are probably better.

Aside from an IVA, it is also possible that an option such as debt management might also work for some people. However, a Debt Management Plan is often more suitable when debts have not yet reached a very serious level.

The ClearStart online application will help to clarify if you need advice on your own particular situation. Remember that specific facts and figures are of enormous value when reaching a decision of this kind – general principles are not a substitute for specific advice that takes your own finances and family circumstances into account.

Further reading:
Bankruptcy | Bankruptcy process | Bankruptcy Law | Alternatives to Bankruptcy | Effects of Bankruptcy | Bankruptcy vs IVA | Disadvantages of Bankruptcy | Bankruptcy FAQs

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