Debt levels in the UK have reached alarming proportions. According the latest Insolvency Statistics, these levels have become unmanageable. Personal insolvencies in Quarter 4 2006 have exceeded the previous year’s figures by 44%. For a person, insolvency implies a person cannot repay their debts, and has become bankrupt or has opted to an IVA (Individual Voluntary Arrangement).
Many people contacting Clear Start have thought about bankruptcy or are worried about being declared bankrupt. It is essential to understand the implications of bankruptcy and the alternatives open to you. Clear Start, one of the top 10 IVA providers in the UK, has a free debt advice helpline that gives unbiased advice to the consumers regarding their condition and the debt solution appropriate for them.
Bankruptcy is a serious decision and must be always used as a last resort due to its drawbacks. Certain elements of bankruptcy that people should stay away from are:
Forfeiture of assets – house and car must be sold
Absence of control – decisions are taken by the Official Receiver and Magistrate
Damage to credit status – practically impossible to get a mortgage, loan or credit card, once bankruptcy is declared
Social stigma – details of bankruptcies are printed in national newspapers
Damage to career - bankruptcy disqualifies you from holding specific jobs and public positions
Many people contacting Clear Start have discovered that an IVA is a better answer to their debt problems than bankruptcy, due to its fewer drawbacks. You get to often keep your assets, like your house and car under an IVA; it is a private arrangement, unlike bankruptcy, which is printed and is much less restrictive on the jobs and positions you can hold.
Mostly, an IVA gives you more control on the outcome, since you accept the decided monthly payments. Since an IVA is cheaper for both creditor and debtor than a bankruptcy, many creditors are also regarding IVAs as a better alternative to bankruptcy.
Clear Start regards itself on providing an ethical and professional service that is completely dependable. You can get an idea of this due to many happy feedbacks posted by their happy clients. This is a testimony to the quality of service the organization provides.
Tags: Alternative To Bankruptcy In The UK, Bankruptcy in The UK