If you are on the verge of bankruptcy and living in the United Kingdom, the popular Individual Voluntary Arrangement (IVA) plan comes very handy. The Creditfix – IVA plan has been initiated by the government in order to save people from the clutches of bankruptcy. Concerned individuals can browse the website lawfareblog.com for more information about the differences between the bankruptcy and the IVA plan. In case, wherein the creditor is threatening the individual to make him or her bankrupt or started the bankruptcy initiatives, IVA seems to the best option available in order to avoid the bankruptcy, which may cause an emotional setback for the concerned individual.
Bankruptcy & IVA
Both bankruptcy and IVA are formal obligations which are legally binding in the court of law in the UK. Both of these plans are to be approved by the court and it is mandatory for both the parties to stick to the agreement signed for the IVA plan. Whereas, in the case of bankruptcy, the court issues the bankruptcy order in favour of the bankrupt after verifying the financial status of the affected individual. Once the bankruptcy petition has been approved by the court, no creditor can disturb or claim their money from the bankrupt. However, there are other conditions apply for the bankrupt individuals as his or her bank transactions will be monitored by the court in order to justify the bankruptcy.
Both bankruptcy and IVA have their own merits and demerits. Hence it is the prime responsibility of the affected individual to choose the right one after knowing the intricacies of both the plans. As per the legal experts, one can opt for IVA over a bankruptcy for the following reasons:
· If the concerned individual has a home or other assets which the individual wants to keep.
· If the individual has his or her own business.
· Likely to lose employment if to go on bankruptcy, especially in the defence employment.
· Have some additional income to run the family
· Want to avoid the embarrassment of being bankrupt in the eyes of the society.
· Get some time before deciding what to do to start earning again.
How To Apply For IVA Plan?
To apply for the Individual Voluntary Arrangement plan, there is a very simple procedure to be followed. After ascertaining and evaluating the current financial position, the person can apply for the IVA plan offered by the creditors, who will scrutinise all the personal information of the individual. The payment terms need to be discussed before signing the IVA agreement and if need be one can seek the help of a legal expert who verify the legality of the agreement which has to be signed by both the parties namely the lender as well as the receiver. Once this process is completed, the required money will be released to the individual or the creditors will be paid directly by the moneylenders. The agreement signed by both the parties is irreversible and no conditions can be altered without any mutual concern.