IVA as an Alternative to Bankruptcy

To many heavy debtors, bankruptcy can be a way to eliminate debts.

However, bankruptcy is always considered to be a last resort. Bankruptcy can damage a debtor's credit for years. Some debtors are not suitable for bankruptcy. Bankruptcy will cause them to lose the job. This includes professionals who are entrusted with the handling of customers' money or assets, such as estate agents, insurance agents, stock brokers, accountants, lawyers and bank officers. It also include civil servants belonging to the disciplinary forces such as police officers and police inspectors.

However, it should be noted that some professionals such as bank employees or managers or licensed stock brokers require special approval from the regulating authority if they wish to remain in the same professional occupation. Professionals entering into IVA ought to know that beforehand. IVA may not help to retain the job. You must enquire with the relevant regulatory body if you have doubts on that.

To debtors who may not opt for bankruptcy, IVA possibly represents a way to reduce their debts to a level within their ability to repay, to avoid bankruptcy and to repair their credit.