Bankruptcy

Bankruptcy should never be seen as an easy way to escape your debt problems.

It is a very severe public process where all your assets, including your home and your car, are sold to pay back your creditors. Future assets acquired during the term of the bankruptcy will be lost, such as inheritances.

IVAs were introduced by the Government as an alternative to Bankruptcy. You make payments that you can afford, and any unaffordable debt will be written off as part of this agreement. 

If you are considering bankruptcy then you are best speaking to one of our advisors who will look at other debt solutions for you. Please call Debts Management on our free phone number, 0808 131 9112 to see if we can help you.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)