Iva Bankruptcy

This is one of the key issues that face people with serious debt problem, and to be honest, there may be a very difficult question to answer.

In my position as a debt adviser, specialising in IVAs think I help a person to understand how their personal circumstances will affect the suitability of each solution, whether an IVA bankruptcy , is still crucial to help anyone who decides on how they can move forward.

So here are the facts, in plain English, that you need to know before you can decide which option, be it an IVA or bankruptcy, is most suitable to your situation.

The Personal Bankruptcy.

What is bankruptcy?

Well, the bankruptcy is: 'when a person is declared in the law to be unable to pay outstanding debt.

(It is also known as insolvent.)

What you can expect to happen

After the court has issued a bankruptcy order against you, you will be interviewed by the official receiver. If you have any resources, you may also be interviewed by a Trustees in Bankruptcy and your assets will be sold by the Trustees in bankruptcy. The money from the sale of assets will be used to pay the outstanding debt, but all costs and fees of bankruptcy will be paid out of these funds before creditors receive any payment, or dividend payments. If you can afford to make monthly payments to the official receiver from the income you will be expected to make such payments for three years. If the Official Receiver's think you can afford to make payments, and you refuse to accept, he can get a court order for you to do so. The official receiver can also create your employer will deduct payments from your salary. The Official receiver has significant powers, and failure to cooperate could result in a warrant for the arrest, or to the public examination in front of a judge. The Official Receiver has the power to reverse any sale of assets in which they are deemed to have been sold for less that their true value, and if it is assumed that the transaction defrauded creditors, there is no time limit as to how far back in time it will let Official walk.