Bankruptcy VS IVA 2023: A Comprehensive Comparison For UK Individuals In Debt

The question of IVA vs bankruptcy comes up when individuals are looking for the best form of debt relief. If you’re overindebted and need to decide between bankruptcy vs IVA, you’ll need to speak with a professional debt solution advisor who can provide information on all the options available to you, so that you can make an educated decision. When breaking down the differences between IVA vs bankruptcy options, it’s better to get unbiased advice. You can gather such advice from qualified and accredited debt solution advisors in the UK. Where can you find them? We’ve gathered a list of the top four platforms that can help you connect with qualified advisors who can assist you with understanding the difference between bankruptcy vs IVA.

Is an IVA Better Than Bankruptcy?

Whether or not an IVA is better than bankruptcy comes down to the merits of the individual situation. For instance, if you have income and can afford to pay something towards your debts, an IVA may be deemed more suitable. If you have funds to pay back debts and need the debt written off, bankruptcy may be recommended.

IVA vs Bankruptcy - The main differences between an IVA and a Bankruptcy

Difference	IVA	Bankruptcy
Length of time	Up to 6 years usually	12 months
Assets	Assets are ceased or sold	Assets are usually lost Advertisement
Creditor charges	Debts and charges such as interest are frozen	All costs are frozen
Costs	Each debt management service provider has its own fees	£680
Debt write-off	IVA writes off a large portion of your debt but doesn’t entirely expunge it – you’ll still need to pay back something	Debt written off except debts that arise from fraud

Bankruptcy Pros and Cons UK: Benefits and Risks of an IVA vs Bankruptcy

IVA Advantages

Freeze interest and fees

Only pay what you can comfortably afford
Creditors cannot harass you
Write off a large portion of debt over £5000

IVA Disadvantages

Impacts your credit rating

Bankruptcy Advantages

You’ll get a fresh start
Creditors cannot take legal action against you
Interest and charges on outstanding debts ceased

Bankruptcy Disadvantages

Excludes child support, alimony, some student loans, and fines

IVA or Bankruptcy: Which is Quicker? 👍

Generally, bankruptcy is quicker than an IVA, as it runs over 12 months before it is discharged. IVAs generally run over 5 to 6 years.

Where Can I Get an IVA or Bankruptcy? Top Best IVA or Bankruptcy Providers UK for 2023

123 Debt Fix: Best Platform to Connect with Debt Advisors Who Can Help You Better Understand What It Means to be on the Bankruptcy Register
Viva Debt Help: Reputable Platform to Use When You Want to Know What is Bankruptcy and What It Entails
Help My Debts Pro: Well-Known Platform for Connecting Individuals with Qualified Debt Solution Advisors Providing Information on Bankruptcy and Insolvency
Debt Nurse: Platform Connecting Britons with Advisors Qualified to Advise and Guide on Bankruptcy UK

Will Bankruptcy or an IVA Affect My Job?

One of the first concerns overindebted individuals usually have is how bankruptcy or IVA will affect their job. It’s only natural to be concerned that your financial status might make matters worse.

The good news is that an individual voluntary arrangement typically will not affect your job, depending on the job you have or industry you work in. There are instances where having an IVA may be a problem. As an example, solicitors or accounts cannot continue working in the profession (in some instances) if they have an IVA in place.

On the other hand, bankruptcy may affect your job if you’re self-employed, or you’re an accountant, solicitor, or have a position in the financial industry. Regular industries and those who are employed will be less affected by bankruptcy in terms of job security.

Declaring bankruptcy may also affect your ability to get a job in the police force, a security firm or civil service. In some instances, an employer may place restrictions on the type of work you do. Do you have to tell your employer that you’re bankrupt? No, you don’t, but it’s best to check your contract terms to see the employer’s stance on the matter. Most companies operating in the financial sector will have a clause in their employment contract.

Best IVA and Bankruptcy Plan Providers in the UK 2023 - Full Review of the

123 Debt Fix: Best Platform to Connect with Debt Advisors Who Can Help You Better Understand What It Means to be on the Bankruptcy Register

123 Debt Fix

123 Debt Fix is a UK based platform with a great reputation in the industry for connecting individuals with debt advisors who have a firm understanding of bankruptcies and IVAs. When applying for bankruptcy, you’ll be placed on the bankruptcy register. Understanding how that works and what to expect is imperative when considering bankruptcy. When indicating that you require further advice via the 123 Debt Fix platform, you’ll be contacted by a qualified and accredited advisor who’ll demystify the process for you.

Highlights of Getting Advice on the Bankruptcy Register

Debts written off
No more harassment from creditors
Make an educated financial decision

No obligation advice

Pros of Bankruptcy Register

Freeze debts
Get back on your feet
Write of debts over £5000

Cons of Being on the Bankruptcy Register

Bankruptcy will appear on your credit record for 6 years.

Viva Debt Help: Reputable Platform to Use When You Want to Know What is Bankruptcy and What It Entails

Viva Debt Help

What is bankruptcy? The qualified and experienced debt solution advisors you can connect with via the Viva Debt Help platform can help you get more insight into that. The advice provided is obligation-free and unbiased, allowing you to learn about the options available to make an educated financial decision for yourself. When it comes to finding a debt solution, it’s important to consider all of your options and get expert debt advice if you don’t understand the processes involved or how the chosen debt relief plan will impact your credit score and finances in the future.

Highlights of Learning What is Bankruptcy All About

Gather advice from debt experts
Weight up your options with more understanding
Get out of debt quicker
Know your rights and what to expect

What is Bankruptcy Pros?

No more harassment from creditors
Write off debts over £5000
Write off credit cards, personal loans, store cards, and council tax

What is Bankruptcy Cons?

Costs £680

Help My Debts Pro: Well-Known Platform for Connecting Individuals with Qualified Debt Solution Advisors Providing Information on Bankruptcy and Insolvency

Help My Debts Pro

Help My Debts Pro connects individuals with qualified debt solution advisors who are experts in providing insight and guidance on bankruptcy and insolvency. The advisors can also provide insight into other solutions, such as debt relief orders and management plans. After consulting with an advisor, you can decide if any options are right for you. Qualified debt solution advisors can provide you with bankruptcy and insolvency advice to help you decide, but you’re not obligated to take on any of the recommended options. If you’d like to chat with an expert debt advisor, simply complete the online debt assessment form, and an advisor will contact you to discuss your financial situation and provide information on the available options.

Highlights of Bankruptcy and Insolvency

Get out of debt
Get advice from expert advisors

Reduced financial stress is better for mental health
Stop calls from creditors

Pros of UK Bankruptcy and Insolvency

Debts over £5000 written off
Improved financial comfort

Cease interest and fees

Cons of Bankruptcy and Insolvency in the UK

Fees are attached to bankruptcy and insolvency.

Debt Nurse: Platform Connecting Britons with Advisors Qualified to Advise and Guide on Bankruptcy UK

Debt Nurse

At Debt Nurse, you can complete a quick online debt assessment to indicate that you’d like contact from a qualified and experienced advisor on bankruptcy UK. Bankruptcy UK can seem confusing until you’ve been provided with all the details to consider. When using Debt Nurse, you’ll be able to gather all the advice needed to make a financial decision for yourself. After consulting with an expert financial advisor on bankruptcy UK and various other debt relief options such as debt management plans, debt relief orders, and IVAs, you’ll be better equipped to decide how to go forward with getting out of debt.

Highlights of Filing Bankruptcy UK

Stop mounting debt
Stop calls and harassment from creditors
Have a clean slate when the bankruptcy is discharged
Put an end to an exhaustive debt cycle

Pros of Bankruptcy UK

Write off debts from credit cards, loans, council tax, and more
Get representation from an insolvency practitioner
End interest and fees

Cons of Bankruptcy UK

Bankruptcy UK costs £680

Conclusion

Both IVA and bankruptcy are viable debt solution options depending on your individual circumstances, which means that it comes down to your preferences and, of course, your financial situation. Understanding which option is best suited to you will take further understanding of each and more insight based on the particulars of your financial situation. It’s best to chat with an expert debt solution advisor who can clarify the processes involved and present options for your consideration. When using any of the recommended platforms to connect with an advisor, rest assured that you’re not obligated to accept any of the offers and are well within your right to make a decision that you feel is right for you.

FAQ’s

What is an IVA Meaning for Your Credit Profile?

If you have an IVA in place, it will be recorded on your credit profile. This usually lasts 6 years and will be marked as “complete” once it’s been finalised.

What Are the Disadvantages of Having an IVA?

An IVA will remain on your credit profile for 6 years and will incur costs for the insolvency practitioner. Also, in most instances, only unsecured debt can be included in the IVA. Your name will appear on the insolvency register.

Does IVA Ruin Credit?

While an IVA doesn’t outright ruin credit, it will have a negative impact on it. When you have an IVA, the record of it will appear on your credit report. As a result, your credit score will go down, and a lower credit score can make it harder to borrow money or get credit in the future.

Will I Lose My House if I Get an IVA?

IVAs provide more protection for your assets than bankruptcy. It’s unlikely that you’ll have to sell your property if you apply for an IVA. That said, depending on how much equity you have in the home (how much of the mortgage is paid off), you may be required to re-mortgage the property 6 months before the end of the IVA, which is done to release equity.

Disclaimer: All debt solutions should be very carefully considered. The websites advertised in this paid promotion do not provide debt advice. If you complete the form and provide permission to be referred, they will pass your details onto a regulated debt advice solution provider. All the partners they use are regulated by the Financial Conduct Authority to provide debt counselling. The websites advertised work exclusively with trusted debt solution providers. If you proceed with one of their solution options, they may receive a fee for introducing you to them. The websites advertised are lead generation companies who pass your details onto third parties in order to help you with your debt solution.

Disclaimer:

The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.