An IVA is one option to look into if you are in debt and want to avoid bankruptcy. Here is a case study from a ClearDebt client who we helped avoid bankruptcy and reduce his debt by more than £40,000, even though we had to struggle against a major creditor who seemed unprepared to get more money back - pushing Rev. A towards the option of bankruptcy.
A debt management plan is unlikely to be an alternative to bankruptcy as it is usually only helpful; to people who are struggling with their debts but not actually insolvent. However, everyone's situation is different - so do get specific advice.
Rev. A could have gone bankrupt: But he didn't want to - he really wanted to do the best he could to deal with his debts and repay what he could.
This is a case where the ClearDebt way of working really paid off. In the case of Rev. A, negotiations to agree a debt repayment solution may have failed - but for the effort put in by our team to ensure the creditor and debtor understood each other's priorities and realistic abilities.
Now in an IVA (Individual Voluntary Arrangement), we helped write off 75 percent of Rev. A's debt. He's happy, bankruptcy has been avoided and he's doing his best with the knowledge he can afford to make the payments. And the creditors? well, they are getting more back than they would through bankruptcy - even though one of them didn't want to.
If you want to find out how to avoid bankruptcy then it's worth taking our short online debt test now:
If you're looking to write off debt but are unsure about IVAs and Bankruptcy it's worth reading our list of Advantages of an IVA over Bankruptcy.