When a person is in debt they often feel that there is nowhere to turn, many hear on the grapevine about IVAs and Debt Management Plans and even bankruptcy, but they do not understand which option is best for them.
At Debt Release Direct, our job is to assess each individual and their circumstances in order to recommend the best debt management solution for them.
The main differences between an IVA and bankruptcy are that the assets are handled in a different way and the home is treated differently, the time periods are different and the employment status has to be considered before choosing each procedure.
An IVA or individual voluntary arrangement is advantageous because it is easier to get a mortgage than with bankruptcy, you can keep control of your assets and you can still be a director of a limited company. With an IVA it is easier to get a bank account and the IVA will leave the customer debt free after a maximum of 5 years, The IVA can write off up to 75% of debt and the IVA can stop the interest on the debt.
With bankruptcy, it will write of 100% and will only last for 1 year however it involves lengthy court procedures and it can be difficult to get a mortgage or bank account. An IVA may take equity from assets, whereas a bankruptcy will not do this, meaning your assets are safer plus an IVA is unsuitable for people who are unemployed or on benefits, whereas bankruptcy is applicable to people of all circumstance.
When you speak to a Debt Release Direct Advisor, they can give you debt advice and debt help over the phone, assisting you in reducing debt or even to eliminate debt altogether.
If you would like to speak to a dedicated, qualified advisor, please call 08000197465 or visit
http://www.debtreleasedirect.co.uk