If you've been debating between an IVA (Individual Voluntary Arrangement) or bankruptcy, there's quite a bit you need to know first.

Bankruptcy is often referred to as the ‘fresh start’ solution – meaning that it can clear your debts. Your assets may be sold to recuperate as much of the debt as possible. It's usually only recommended as the last resort. You should get help from a debt professional to see if an IVA is more suitable first.

Will I lose assets in an IVA?

One of the biggest set backs with bankruptcy is that you may lose your assets but the IVA process is different. You may have to give up some of the equity in your house, but you will not lose control of your assets.

What about my privacy?

Bankruptcy is a public matter. Legally, there are some people that must be informed, such as your banks. It will also be published in newspapers, so you will not be able to control who finds out. An IVA is a more private option. Whilst your IVA will be published on the Insolvency Service Website, it will not be published in any newspapers.

How can I choose?

Your choice should be based on a thorough analysis of your financial situation. The last thing you want is to choose the wrong debt solution.

Bankruptcy should usually be the last resort when you have exhausted every other option available. Many people use an IVA to avoid the stigma and trauma. We can put you in touch with debt advisers who can recommend which one is better for you. Click to find out how to arrange an IVA and also get some confidential advice to help you get out of debt.