• Freeze interest and charges on your debt immediately
• Stop contact and demands from your creditors
• Consolidate your debts into one affordable monthly payment
• A clear plan to get you out of debt at a sensible pace
• Free expert help and advice with no obligation or pressure

Alternatives to Bankruptcy

When you declare bankruptcy, you will lose all of the assets you have, as well as any interest in your home, which is why it is so important to consider all of the bankruptcy alternatives available to you. In most cases, you can find solutions to your financial problems without having to resort to bankruptcy.

What are the Alternatives to Bankruptcy?

One of the alternatives to bankruptcy is an IVA, also known as an Individual Voluntary Arrangement. An IVA is a formal agreement between a debtor and his or her creditors. This legally binding agreement is a method of helping people to avoid bankruptcy, but to get an IVA arrangement it is necessary to have the services of a licensed Insolvency Practitioner.

The Insolvency Practitioner will present a proposal to your creditors that may include a lump sum payment, or a monthly payment. Only the creditors owning 75% of your debt have to agree to the proposal for it to be legally binding to all of your creditors. When making payments on an IVA, the arrangement will usually last for 3 to 5 years, but your assets are protected.

There is also the option of working with your creditors yourself and try and get them to come to some type of informal agreement. This option is not always successful due to the fact that it can be difficult to get all of your creditors to agree to a payment arrangement. You can choose to use the services of a company that offers Debt Management Plans; these companies will work with your creditors to get them to come to some type of repayment agreement, though they often charge fees to do so.

You can also look into the option of getting an Administration Order as another of the debt solutions bankruptcy alternatives. To qualify for an administration order, you must have two or more creditors, and owe less than £5,000 in total; plus there must be at least one court judgment against you. To get an Administration Order you will have to get a Form N92 from your local County Court Office.

Get Advice on Bankruptcy Alternatives

There are many debt solutions bankruptcy alternatives that should be considered before taking such a drastic step as bankruptcy, which could ruin you financially for a long time to come. When considering bankruptcy alternatives you’ll want to choose the option that will provide you with the best success for eliminating your debt, but be the least intrusive on your personal life.

Because declaring bankruptcy is such a serious step to take, you’ll want to get some professional advice before you make the decision to do this. Consider all of the bankruptcy alternatives available to you first.