Experiencing difficulties with your finances? Considering bankruptcy as the only possible solution to solve your problems? There is an alternative to bankruptcy.

Bankruptcy should only be considered as a last resort. Although bankruptcy is seen as a positive way to release you from your debts, it comes with restrictions that have long term effects, and you may find it difficult to obtain future credit. An alternative to bankruptcy is an Individual Voluntary Agreement (IVA), a legally binding agreement between you and your creditors. An IVA is less invasive than declaring yourself bankrupt and is intended to help reduce your debt by arranging affordable monthly repayments with your creditors. Interest charges can be reduced or stopped during the period agreed between you and your creditors. This period is usually 5 years, after this your debt will be settled.

Pros and Cons

• With an IVA you can clear up to 75% of your debts (subject to status).
• You can keep your assets (your home).
• An IVA can remain private between you and your creditors.
• A cheaper option than bankruptcy.
• Your creditors must agree for an IVA to be put in place - can sometimes be difficult.
• An IVA will appear on your credit file.
• You must stick to the agreed repayments throughout the agreed period.

For more information on a bankruptcy alternative please read this guide on avoiding bankruptcy.

What We Offer

At Debtexplorer we have access to a wide range of practitioners who negotiate directly with your creditors, relieving you from the pressure of repayment demands. You simply send the practitioner one monthly repayment and they will arrange to pay off your debt. An IVA is a great alternative to bankruptcy which will ensure you clear your debt quickly and hassle free.

If you have debts of more than £5,000 and would like to see if an IVA would be a suitable alternative to bankruptcy for you, please complete our online application form.