Aside from the social stigma, if you are declared bankrupt uk”>bankrupt you:
-Lose your business and professional status
-You are not allowed to hold public office
-You will not be able to get credit over £500 without disclosing that you have been made bankrupt
-Face a number of restrictions with regards to running a business
-Your employment prospects will be prejudiced
However, according to Clear Start, the UK Consumer Debt Service, there is hope in the form of an IVA. IVAs were introduced by the government as a legitimate alternative to bankruptcy.
With an IVA , debtors make monthly payments based on what they can actually afford over a five year period. It is not uncommon for a debtor to pay as little as £200 a month into an IVA. After five years, the debt is deemed to have been cleared. This happens even if the creditors end up getting less than 20% of their debts repaid.
Furthermore, IVAs do not have any of the stigmas, restrictions or disqualifications associated with bankruptcy.
As a result, IVAs offer an affordable and legitimate alternative to bankruptcy and enable debtors to make a fresh start.
Tags: bankruptcy, consumer debt, iva, stigma
