IVAs can be a more flexible solution to money problems, and can be a lot less daunting than bankruptcy. Bankrupt people still face the stigma of going through courts; they have their names in the paper and will forever be excluded from certain types of work. But with an IVA, although not a light choice to take, you will be free from your debts in five years with less impact on your credit report.
We’ve all seen the ads for IVA, but it’s not as simple as they make out. You have to be realistic about the money you owe, willing to change your spending habits and have to negotiate how much you pay. You will still have people probing all your finances and will have to be prepared to stick to a tight budget.
Make sure you visit a reputable firm to execute your IVA. There are charities such as the Consumer Credit Counselling Service (CCCS) who are much better qualified than those firms who advertise on TV. Plus charitable and voluntary organisations are much more likely to have your best interests in mind and can therefore advise you better.