Are you puzzle with a myriad of questions related to your debts? Are you bestrideing the fence to find the best solution for your debt life? Well, if you are then it is time for you to end this confusion. Before you even think that one of the best choice is to file for a bankruptcy (which most of the individuals do); it is always imperative to gain a comprehensive know how of where you are standing. Filing for a bankruptcy is definitely not a solution for every kind of debt related solution. There is a multitude of other ways by which you can certainly come out of this situation.
When you are knee deep in debts and you are badly struggling to meet both the ends, it is high time that you consider a solution to your debt problems. If you do not take immediate steps then you will reach a situation whereby you have to file a bankruptcy. Do you think that filing for a bankruptcy is the best solution that you could opt for; considering your current financial situation? Well, this is just a one odd way but definitely not the best for all situations. The worst part of filing for a bankruptcy is that, your credit score will be impacted very badly. This leads to issues in your future financial life too.
However, you have a much better alternative than filing a bankruptcy with Individual Voluntary arrangement plan.
IVA or Individual Voluntary Agreement is one of the most ideal alternatives to bankruptcy. A lot of debtors have reaped the benefits of such an arrangement. They have been able to get out of debt within a fixed time period.
Individual Voluntary Agreement
Individual Voluntary Agreement is a legal agreement that is signed between the debtor and the creditors. It has certain terms to which both you and your creditors have to agree upon. It allows you to make affordable monthly payments to the creditors. It might demand you making use of a valuable asset for meeting due monthly payments to the IVA. You might be given an option to use or not use security or deposit while signing the contract with your creditors.
Reasons behind IVA Being Better To Bankruptcy
Individual Voluntary Agreement is a lot better to filing a bankruptcy. When you need to borrow credit, your credit record or score is the single most important financial factor. Bankruptcy will affect that score negatively and that would be reflected for as long as 10 years or so. You cannot easily qualify for further credit. Through regular monthly payments under Individual Voluntary Agreement, you will be able to improve your credit score.
Bankruptcy is not a private debt solution like Individual Voluntary Agreement. Under Individual Voluntary Agreement, you won’t be taken to the court for cross questioning about your bad financial condition which happens when you file a bankruptcy.
You might be barred from certain financial and legal jobs if you file bankruptcy. This is absent when you go for Individual Voluntary Agreement.