Options for the Individual


For a quick guide at a glance of your options and the impact to each click here



Sell surplus assets or re-mortgage your home so the funds can pay your debts



  • Keep credit rating intact
  • No professional costs
  • Easy to achieve
  • Must be affordable
  • Must have assets available

Informal arrangement

Negotiate with creditors individually to achieve a settlement of the entire debt, reduce interest payments or extend terms of agreement



  • Cheap to achieve
  • Can reduce pressure if agreement reached
  • Not legally binding
  • Not all creditors may agree
  • Credit rating still affected

Individual voluntary arrangement (IVA)

Formal agreement with all creditors to agree settlement of debts at a rate usually less than 100%





  • All creditors bound
  • No comeback from creditors as long as agreement is maintained
  • Agreement is completely flexible
  • Costs of IVA can be drawn from contributions
  • Needs 75% in value of creditors to agree
  • Only those creditors who have received notice are bound by terms
  • Industry standard returns to creditors are 25% - 30% over 5 years


Court process where virtually all debts are included.  Once bankrupt, no further action can be brought by creditors.  All assets are sold and money paid to creditors.


Advantages Disadvantages
  • Closure on financial difficulties
  • Usually lasts only one year
  • Lower cost than IVA
  • Essential household furniture is protected
  • Restrictions from acting in certain capacities, e.g. company director, solicitor, accountant
  • Stigma of being bankrupt
  • Home is at risk
  • Income contributions for up to three years
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