There is an alternative to bankruptcy if you have growing debts, you should consider an IVA. An Individual Voluntary Arrangement could be the answer as it is a formal agreement between you and the people or organisations you owe money to. It can show your creditors that you are adopting a sensible attitude to your debt.

Once the agreement has been set up your creditors are informed and they can then stop interest rates and negotiate with the debt management company. The debt management agency will negotiate on your behalf for a reduction in the debt and time to pay a percentage in small amounts.

Bankruptcy has a stigma along with it as it is seen as a failing. This is not as apparent today as to be declared bankrupt in the newspapers is not always necessary. If you get some good advice and take out an IVA then you can avoid this and emerge from it free of any debt problems.

One of the best advantages of an IVA is that your financial situation will not be made public as you can avoid declaring yourself bankrupt. You will have to repay what you can afford as a monthly payment but at the end of the IVA, usually 5 years, then you will be debt free with no history of bankruptcy. Taking out an IVA will provide you with a detailed help plan and further assistance to avert future problems. An IVA is an excellent way to manage debt and offers a solution for many financial problems.