專欄

An IVA is a voluntary agreement with your creditors. As such, there is far less stigma with an IVA agreement compared with bankruptcy. However, a record will still be kept by the Official Receiver's Office and is open to public search. If you are made bankrupt, then all your assets will be vested in your Trustee. It is very likely that the Trustee will sell your major assets, in order to repay your debts. Unlike bankruptcy, however, you do not necessarily have to sell your home and other major assets under IVA agreements. If you set up an IVA, your professional or employment status is less likely to be affected. By contrast, your professional career may be in jeopardy, if you are a bankrupt. In addition, you can continue to serve as a director in a company or run your own business, neither of which is allowed in bankruptcy. There is a better chance for you to obtain credit after you have repaid your debts pursuant to an IVA agreement. Legal proceedings for bankruptcy can involve considerable time and cost. Creditors may expect better repayment from a debtor.